We recently published a list of 10 Stocks Insiders Are Selling In March. In this article, we are going to take a look at where Adaptive Biotechnologies Corporation (NASDAQ:ADPT) stands against other stocks Insiders are selling in March.
Wall Street experienced a challenging week, marked by turbulence as the broader market entered a correction, declining 10.1% from its record high in February. All three major indexes dropped between 2.3% and 3.1% over the week. However, Friday brought a little more optimism among investors as all three major indexes closed a bit higher. Blue-chip stocks closed 1.65% higher, the broader market index gained 2.13% and the NASDAQ Composite closed Friday session 2.61% higher.
This week continues to keep investors on their toes as the U.S. retail sales report, scheduled for release on Monday, will provide insights into consumer spending. According to Yahoo Finance, some experts believe investors will closely examine the report for signs of an economic slowdown. Experts polled by Dow Jones expect retail sales to have increased by 0.6% last month.
Investors are also closely watching for another significant update this week: the Federal Reserve’s decision on interest rates. Since September, the Fed has cut interest rates three times and still, the broader market entered a correction.
Examining recent insider trades can offer valuable insights, as executives often have a deeper understanding of their companies. For instance, when a CEO or CFO buys company stock, it may signal strong confidence in the business’s future.
However, insider selling doesn’t necessarily reflect a lack of confidence; it could be due to personal financial needs or a desire to diversify investments. These transactions are often executed through pre-arranged plans, like 10b5-1 plans, to avoid any appearance of improper timing. While insider activity can be informative, it’s important to consider it alongside the company’s financial health, market trends, and industry developments.
Our Methodology
To identify the 10 stocks insiders are selling in March we used Insider Monkey’s insider trading stock screener and looked for stocks where at least three insiders sold shares this month. With each stock, we note the number of insiders who recently sold shares and the company’s market capitalization.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Number of Insiders Selling: 10
Market Capitalization: $1.08 billion
The third among the 10 stocks insiders are getting rid of in March is a commercial-stage biotech, Adaptive Biotechnologies Corporation (NASDAQ:ADPT). The Seattle, Washington-based company is focused on the development of an immune medicine platform for the diagnosis and treatment of various diseases.
Recently, Adaptive Biotechnologies (NASDAQ:ADPT) announced it has launched an upgraded version of its clonoSEQ assay for measurable residual disease (MRD) detection in diffuse large B-cell lymphoma (DLBCL) using circulating tumor DNA (ctDNA). The enhanced clonoSEQ assay, which incorporates an optimized DNA extraction methodology and maximizes sample input, delivers a 7-fold increase in sensitivity.
The Centers for Medicare Centers for Medicare & Medicaid Services recently set a favorable reimbursement rate of $2,007 for the company’s clonoSEQ test.
Revenue for the fourth quarter and full year 2024 was $47.5 million and $179.0 million, respectively. The MRD business, which contributed 85% of revenue in the fourth quarter and 81% of revenue in the full year, grew 31% and 42% over the corresponding periods a year ago. Net loss was $159.6 million in 2024, compared to $225.3 million in 2023. Adjusted EBITDA (non-GAAP) was a loss of $80.4 million for 2024, compared to a loss of $116.4 million in the prior year. Cash, cash equivalents and marketable securities were $256.0 million as of December 31, 2024.
In March, 10 insiders, including the company’s CEO, COO, and CFO sold a total of close to $4 million worth of Adaptive Biotechnologies shares at an average price of $7.11 per share. The stock gained 21.33% since the beginning of the year, and is currently trading at $7.28. Over the past 12 months, Adaptive Biotechnologies shares returned 21.33% to its investors.
Five analysts have given a “Moderate Buy” rating to Adaptive Biotechnologies (NASDAQ:ADPT) stock with an average price target of $9.10, according to MarketBeat.
Overall, ADPT ranks 3rd on our list of stocks Insiders are selling in March. While we acknowledge the potential of ADPT, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADPT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
