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 Ionis Pharmaceuticals (NASDAQ:IONS) 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 scientist in a laboratory making a breakthrough discovery in biotechnology.
Ionis Pharmaceuticals, Inc (NASDAQ:IONS)
Number of insiders selling: 10
Market Cap: $4.9 billion
Sixth on our list of 10 Top Insider Stock Buys And Sells in January is a biotechnology company, Ionis Pharmaceuticals. The Carlsbad, California-headquartered company is engaged in the discovery and development of RNA-targeted therapeutics. At the moment, Ionis has six marketed medicines and a pipeline of innovative therapies for rare illnesses, and neurology and cardiology treatments.
In December, the U.S. Food and Drug Administration (FDA) authorized Tryngolza, an Ionis’ RNA-targeted therapy for the treatment of familial chylomicronemia syndrome (FCS). Tryngolza is the first-ever FDA-approved treatment that significantly and substantially reduces triglyceride levels in adults with FCS and offers a clinically meaningful reduction in AP events when used with an appropriate diet (≤20 grams of fat per day).
Last month, 10 insiders, sold a total of around $5.21 million worth of Ionis shares at an average price of $32.63 per share. Out of the total amount, the company’s CEO, P Brett Monia, sold 46,687 shares, worth $1.52 million, reducing his holdings to 219,526 Ionis shares. Monia also sold 38,843 shares in February.
The stock is now trading at $31.04 per share, having lost 11.21% since the beginning of the year. Over the last 12 months, Ionis shares dropped 30.01%. With 10 sales in January, and a market capitalization of $4.9 billion, Ionis Pharmaceuticals is also one of 10 Mid-Cap Stocks Insiders Are Selling Recently.
The average rating on Ionis stock from 18 analysts is “Buy,” with a price target of $62, which is an increase of 99.74% from the latest price, writes StockAnalysis.
Overall, IONS ranks 6th on our list of top insider stock buys and sells in January. While we acknowledge the potential of IONS, 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 IONS 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.