We recently published a list of 10 Micro-Cap Stocks Insiders Were Buying In Q1 2025. In this article, we are going to take a look at where Fractyl Health, Inc. (NASDAQ:GUTS) stands against other micro-cap stocks insiders were buying in Q1 2025.
The White House announced Tuesday that Trump’s tariffs would take effect immediately after being unveiled on Wednesday. In anticipation of these “reciprocal tariffs,” which will apply to all countries, the stock market reacted. By Tuesday morning, the broader market index and Nasdaq Composite dropped by about 0.2%, while blue-chip companies lost 0.06%.
Amid ongoing market uncertainty, insider trading often comes under the spotlight. Executive stock purchases can signal optimism, but sales may reflect personal financial decisions or a need to diversify investments. To maintain transparency, executives typically follow pre-arranged strategies, like 10b5-1 plans. While insider trading can offer valuable information, it’s important to evaluate it in the broader context of the company’s financial stability and current market trends.
Our Methodology
Today, we’re focusing on stocks with micro market capitalizations that have seen significant insider buying in the first quarter of the year. Using Insider Monkey’s insider trading screener, we identified companies with market caps under $250 million where at least three insiders purchased shares in the past three months. From this list, we ranked the top 10 stocks with the highest number of insiders making purchases. Stocks that have been recently covered were excluded from our 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).
With each stock, we note the number of insiders who acquired shares in the first quarter and market capitalizations.
A biologist in a lab coat studying a culture of cells to find a cure for metabolic disorders.
Fractyl Health, Inc. (NASDAQ:GUTS)
Number of insiders buying: 5
Market Capitalization: $54.30 million
Fractyl Health is a metabolic therapeutics company focused on developing treatments for type 2 diabetes (T2D) and obesity. It is developing the Revita DMR System, a procedure targeting duodenal dysfunction, and Rejuva, a gene therapy platform aimed at long-term remission of T2D by altering metabolic hormone function in the pancreas.
In January, the company announced a strategic decision to focus Revita exclusively on weight maintenance, prioritizing the REMAIN-1 pivotal study to address the most pressing need in obesity care, while advancing its novel Rejuva gene therapy platform into first-in-human studies. Fractyl paused investment in its Revita programs for T2D, which consisted of the REVITALIZE-1 study, and the Germany Real-World Registry study.
In March, the company announced positive early data from its REVEAL-1 cohort in the REMAIN-1 pivotal study, suggesting that Revita may help prevent weight regain after stopping GLP-1 drugs. This addresses an unmet need in obesity treatment as the demand for scalable, non-pharmacologic solutions grows with increasing GLP-1 discontinuation rates.
During the first quarter, five insiders acquired approximately $193,475 worth of Fractyl Health shares at an average price of $1.24 per share. Currently, the stock trades at $1.11 per share, having declined 46.12% year-to-date and 83.53% over the past 12 months. Net loss amounted to $68.69 million, compared to net loss of $77.09 million in 2023.
For the full year 2024, Fractyl Health reported revenue of $93,000, compared to $120,000 in 2023. Gross profit was $43,000, flat compared to the previous year.
Based on two Wall Street analysts’ estimates, Fractyl Health stock is a “Moderate Buy” with a price target of $8.00. The average price target suggests a 620.72% potential upside from the latest price.
Overall, GUTS ranks 8th on our list of micro-cap stocks insiders were buying in Q1 2025. While we acknowledge the potential of GUTS 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 GUTS 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
