It can be useful for investors to keep an eye on which shares have experienced meaningful insider buying.
This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its directors.
If they are buying, it could be a sign that they are confident in the direction the company is heading and see value in its shares.
With that in mind, let’s take a look at one ASX All Ords stock that has reported some major insider buying this week.
Which ASX All Ords reported insider buying?
The company in question is clinical stage biotechnology company PYC Therapeutics Ltd (ASX: PYC).
According to a change of director’s interests notice, the company’s non-executive chair, Alan Tribe, just snapped up 50 million shares through an off-market transfer on 17 May. This increased Tribe’s holding in PYC Therapeutics to approximately 1.537 billion shares.
The release reveals that the biotech’s chair paid a total of $5.25 million for the shares. This equates to an average of 10.5 cents per share. This is in line with where the ASX All Ords stock is currently trading.
Should you invest?
One leading broker that would likely approve of this purchase is Bell Potter.
Earlier this week, the broker initiated coverage on the ASX All Ords stock with a speculative buy rating and 17 cents price target.
Based on its current share price, this implies potential upside of 62% for investors over the next 12 months.
Commenting on its bullish view, the broker said:
PYC Therapeutics (PYC) is a clinical-stage biotech company harnessing its differentiated RNA drug development platform to treat rare inherited diseases. PYC is actively progressing three drug candidates through clinical development, each of which has first-in-class and/or best-in-class potential. In May 2024, PYC reported highly encouraging first clinical data for its lead drug candidate (called VP-001) in patients with a rare form of blinding eye disease, called retinitis pigmentosa type 11 (RP11).
We initiate coverage of PYC with a speculative BUY recommendation and $0.17 valuation. Pro-forma cash balance was ~$84m as at 31 March 2024, providing runway into 2H CY25 to achieve the above-mentioned Phase 1/2 clinical trial readouts. PYC have multiple shots on goal with three highly promising drug candidates for rare diseases. We also see value in the company’s internal platform and potential to continually generate differentiated RNA therapeutics for inherited diseases.
The post Guess which ASX All Ords insider just bought 50 million shares in their company appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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