We recently published a list of 10 Top Insider Stock Buys And Sells In January. In this article, we are going to take a look at where Apellis Pharmaceuticals (NASDAQ:APLS) stands against other top insider stock buys and sells in January.
Ever heard of the “January effect?” In case you haven’t, a “January effect” is considered a phenomenon in the stock market where stock prices, most commonly of small-cap stocks, rise in the month of January. Analysts have noticed the pattern and provided various explanations for it.
Some attribute the January rise in price to tax-loss harvesting, which usually happens between October and December. The theory suggests that after investors have sold some of their stocks at the end of the year for tax purposes, investors search for new buying opportunities. Others believe that year-end bonuses lead to more investments which subsequently increases stock prices. Overall, whatever the reasons, January seems to be a favorable part of the year for the stock market.
This January, the broader market index went up 2.93%. But, what are some of the stocks that have seen the most insider trading activity this month? To find out, we used Insider Monkey’s insider trading stock screener and looked for stocks with a minimum of five insiders buying or selling in January.
Why should we be interested in insider trading activity? While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
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A biomedical scientist in a lab coat conducting research on biopharmaceutical compounds.
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Number of insiders selling: 11
Market Cap: $3.514 billion
Second among the 10 top stocks with heavy insider trading activity in January, is a biopharmaceutical company, Apellis Pharmaceuticals. The company is engaged in the development of new therapies for various serious illnesses by controlling a part of the immune system known as the complement cascade. Apellis Pharmaceuticals two treatments targeting C3, the central protein in the cascade, have been approved, and one of them is Syfovre – the first-ever therapy for geographic atrophy, a leading cause of blindness around the world.
In January, 11 insiders, including CEO, CFO, and CTO, sold around $2.76 million worth of Apellis Pharmaceuticals shares at an average price of around $29.76 per share. The stock is now trading at $28.10, having lost 11.96% year-to-date.
Over the past 12 months, the stock dropped 58.59%, and some analysts believe this happened due to the lack of approval of Syvovre in Europe.
For the third quarter of 2024, Apellis Pharmaceutical disclosed $152 million in Syfovre US net product revenue. Total revenue for the quarter was $196.8 million, compared to total revenue of $110.4 million, including $75.3 million in Syfovre US net product revenue for the third quarter of 2023.
According to data from Stock Analysis, 18 analysts have an average “Buy” rating on Apellis Pharmaceuticals stock, with a 12-month price target of $46.71, representing an increase of 66.08% from the last price.
On January 27, the company announced that Australia’s Therapeutic Goods Administration (TGA) has approved Syfovre for the every-other-month treatment of adult patients with geographic atrophy secondary to age-related macular degeneration with an intact fovea and when central vision is threatened by geographic atrophy lesion growth. Syfovre is the first and only approved treatment for geographic atrophy in Australia.
Overall, APLS ranks 2nd on our list of top insider stock buys and sells in January. While we acknowledge the potential of APLS, 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 APLS 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.
