We recently published a list of 10 Cheapest Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Regulus Therapeutics Inc. (NASDAQ:RGLS) stands against the other cheap stocks insiders are buying recently.
Why should we be interested in affordable stocks? Some investors like to look for cheaper stocks in order to diversify their portfolios, because these penny stocks often operate in different industries than larger businesses.
Some investors’ strategy is finding nascent companies with strong growth potential, which can bring high returns once the companies have grown. Even though penny stocks often carry higher risks and are more prone to market volatility, they also offer investors more room for growth.
What are some ways to assess cheap stocks that are worth investing in? While there’s no single simple or complicated rule that investors can follow to achieve secure results, some strategies can help. One strategy is to keep track of insider trading activity. Insiders or, in other words, people in high positions within companies, such as CEOs, CFOs, directors and other executives have valuable insights into the company’s strategic moves, plans, and initiatives. A CEO’s investment in a company’s stock can sometimes signal strong confidence in the company’s future.
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.
What are some of the most affordable stocks insiders have been buying over the last 30 days? To find out, we used Insider Monkey’s insider trading stock screener, focusing only on stocks where at least two insiders had purchased shares recently. From there, we ranked the 10 stocks with the lowest average price per share.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
With each stock, we note the average price per share of these purchases and the stock’s market capitalization.
A factory worker in a hard hat operating a machine, symbolizing the preclinical drug production process.
Regulus Therapeutics Inc. (NASDAQ:RGLS)
Average price per share: $1.08
Market capitalization: $85.15 million
The sixth stock among these cheapest penny stocks insiders have been purchasing is a biopharmaceutical company engaged in the discovery and development of innovative medicines targeting microRNAs, Regulus Therapeutics Inc. (NASDAQ:RGLS). Among the company’s leading candidates is Farabursen (RGLS8429), an anti-miR next-generation oligonucleotide targeting miR-17 for the treatment of autosomal dominant polycystic kidney disease. The San Diego, California-headquartered company is also working on a pipeline of preclinical drug products for target organ-selective delivery strategies.
On January 29, the company announced positive clinical and regulatory updates from its autosomal dominant polycystic kidney disease program for Farabursen. “The results from Cohort 4 are very promising, further validating the impact of farabursen on urinary exosomal polycystin levels and suggesting an opportunity to beneficially impact kidney volume growth rate, as we have now observed notable improvements across multiple treatment cohorts,” stated Alan Yu, M.D., University of Kansas Medical Center.
Following the news, on January 30, two insiders acquired a total of around $75,046 worth of Regulus Therapeutics Inc. (NASDAQ:RGLS) shares at an average price of $1.08 per share. Out of the total amount, the company’s CEO, P Joseph Hagan, bought 50,000 shares, increasing his ownership to 260,808 shares. The stock is now trading at $1.30 per share, as it lost 17.72% since the beginning of the year. Over the past 12 months, Regulus Therapeutics shares dropped 16.13%.
Regulus Therapeutics has an average “Strong Buy” rating from six analysts. Data from StockAnalysis further reveals a 12-month price forecast is $10.33, representing an increase of 694.62% from the previous price.
Overall, RGLS ranks 6th on our list of the cheap stocks insiders are buying recently. While we acknowledge the potential of RGLS as an investment, 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 RGLS 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.
