We recently published a list of 10 Stocks With At Least $10 Million In Insider Spending Recently. In this article, we are going to take a look at where Arcus Biosciences, Inc. (NYSE:RCUS) stands against other stocks with at least $10 million in insider spending recently.
Since Donald Trump took office, the stock market has experienced a roller coaster ride. Nonetheless, despite concerns about tariffs, job cuts, policy changes, and geopolitical uncertainties, the broader market has risen by 1.46% year-to-date. Furthermore, equity strategists in a Reuters poll project that the broader market will finish the year 9% higher than its current level.
“Many analysts agree with this projection, arguing that the Trump administration’s policies won’t have long-term negative impacts on economic growth or inflation. Furthermore, Trump is often considered the most pro-stock market president in American history.
In addition, one factor that could support the bull market is the adoption of AI, which, according to Morgan Stanley’s Andrew Slimmon, could lead to a productivity boom similar to what happened with the Internet in the late 1990s. Slimmon also points out that investor behavior over the last few years seems similar to what it was in previous bull markets, and adhering to these patterns can be one of the most reliable strategies for driving portfolio outperformance.
When analyzing investor behavior, we chose to focus on insiders—high-level executives and directors within a company. Why focus on insiders? Because they often have valuable insights into a company’s strategy, plans, and next moves. For example, when a CEO or CFO invests their own money in company shares, it can signal strong confidence in the company’s potential.
While both insider buying and selling can be driven by various motives, it’s important to consider these actions in the context of the company’s fundamentals, industry trends, and market conditions. This is why due diligence is crucial before making any investment. However, insider trading activity, along with other relevant factors, can offer valuable insights into a company’s capabilities, helping investors make more informed decisions.
What stocks have seen at least $10 million in insider spending recently? To find out, we used Insider Monkey’s insider trading stock screener, focusing on stocks where at least one insider purchase since the beginning of the year was valued at $10 million or more. Although the total value of insider purchases during this period may be higher, only those worth $10 million or more were considered in this search. Since there were more than 10 stocks meeting this criteria, we selected the 10 stocks with insider purchases ranging from $10 million to $20 million, choosing those with the highest amounts within this range for further analysis.
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).
For each stock, we provide details on the highest individual purchase, the number of insider purchases between $10 million and $20 million since the start of the year, and the company’s current market capitalization.
A scientist in a laboratory using advanced microscopes to analyze tumor cells.
Arcus Biosciences, Inc. (NYSE:RCUS)
Highest Individual Purchase: $14,999,996.00
Number of Purchases Worth Between $10 million and $20 million: 1
Market Capitalization: $1.15 billion
The sixth among 10 stocks with at least $10 million in recent insider spending is Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage, global biopharmaceutical company. Arcus is focused on developing best-in-class molecules and combination therapies for cancer patients.
Among the company’s leading candidates are Domvanalimab, an anti-TIGIT antibody currently in Phase 2 and Phase 3 clinical trials, and AB308, an investigational anti-TIGIT monoclonal antibody in a Phase 1b clinical trial studying patients with advanced solid and hematologic malignancies. TIGIT is a checkpoint protein found on immune cells in the tumor microenvironment that inhibits the immune system’s natural ability to detect and kill cancer cells.
On February 18, one investor bought nearly $15 million worth of Arcus shares at a price of $11 per share. The stock is currently trading at $10.89, reflecting a 26.86% drop year-to-date. This purchase was part of the company’s underwritten offering of 13,636,364 shares of common stock, aiming to raise approximately $150 million. The company stated it will use the net proceeds from the offering to fund ongoing research and development activities.
On the same day, Arcus (NYSE:RCUS) announced it had retained the rights to Casdatifan, a potential best-in-class HIF-2a inhibitor. HIF-2a inhibitors are a type of medication designed to block the activity of a protein called HIF-2a (Hypoxia-Inducible Factor 2 alpha). In certain types of cancer, such as kidney cancer, HIF-2a becomes overactive and promotes the growth of tumors and the development of new blood vessels that nourish these tumors. “We are thrilled to retain ownership of casdatifan, which has the potential to address a significant unmet need for patients with an estimated $5 billion market opportunity,” stated Terry Rosen, Ph.D., chief executive officer of Arcus.
For the full year ending December 31, 2024, the company disclosed total revenues of $258 million, compared to $117 million for the prior year. Net loss amounted to $283 million, which compares to a net loss of $307 million in 2023.
Data from MarketBeat shows that 10 analysts have given Arcus stock an average ‘Buy’ rating, with a price target of $30.25. The average price target suggests an upside of 177.88%.
Overall, RCUS ranks 6th on our list of stocks with at least $10 million in insider spending recently. While we acknowledge the potential of RCUS, 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 RCUS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
