Insider Buying Could Indicate a Bottom in These 2 “Strong Buy” Stocks

Investors are always on the lookout for the best strategy to find the right stocks. And that can mean turning to the experts, finding ‘those in the know,’ and following their lead. But who to trust?

One logical place to look is on the inside, at the opinions of corporate officers, the insiders, whose access to their company’s workings and information gives them a much sharper view than is available to any old internet researcher. Insiders’ trading activity has long been recognized as a sound clue toward stock performance.

This was clear to George Muzea as long ago as the early 80s. Muzea once held a role as a market advisor to investing legend George Soros, and has been following insider activity for most of his career. “Insiders are basically value investors. They buy into price weakness and sell into price strength,” Muzea noted.

TipRanks has the tools that investors need to follow the market’s insiders. The Insiders’ Hot Stocks tool is a perennial favorite, allowing investors to choose to follow or emulate a range of insider trading strategies. Using the data, we’ve pulled up the latest scoop on two Strong Buy stocks that may meet Muzea’s criteria – the insiders are buying while prices are weak.

Revance Therapeutics (RVNC)

We’ll start with Revance, a leader in cosmetic medicine for both aesthetic and therapeutic purposes. The market here is substantial – dermal fillers, one of Revance’s chief products, are the second-most performed minimally invasive aesthetic cosmetic procedure – and the US market for facial aesthetic procedures is estimated at $2.2 billion. On the therapeutic side, there is a $2.3 billion global market for neurotoxin – mainly botox – use. Revance has a strong presence in both fields.

The company has several products approved and on the market. Revance’s main product line, as noted above, is in dermal fillers; its RHA Collection of fillers brought in $18.3 million in revenue during 3Q21, out of a total top line of $19.7 million. Revance’s revenue in the quarter was up by 418.4% on the same period a year ago, and for the first nine months of 2021, the total revenue of $51.8 million compared favorably to the $4.2 million from the same time in 2020.

It should be noted that Revance’s Q3 revenue numbers came in just under Wall Street expectations. The top line had been forecast at $20.1 million. EPS on the other had was reported at a net loss of 87 cents per share – which was better than the 97-cent net loss expected.

So Revance has marketable products with increasing demand – all to the good. But the stock is down 50% this year, and a look at the charts shows that most of that loss came in mid-October. The company’s stock took a massive 39% hit on the 18th of that month, when the FDA sent a Complete Response Letter (CRL) in response to the Biologics License Application for daxibotulinumtoxinA (daxi). The BLA sought approval for daxi as a treatment for moderate to severe glabellar (frown) lines; the CRL explained why the FDA cannot grant that approval at the current time.

Revnance is already planning its response to the letter, through a Type A meeting with the FDA. These meetings are the standard response, and are intended for pharma companies to gain clarity on what is required for the company to move forward with the requirements for approval in alignment with regulatory needs. The meetings are normally scheduled within 30 days of the request.

The drop in share price has not discouraged Mark Foley, the President and CEO of Revance, from increasing his holdings on November 29. He purchased…

 

Continue reading at YAHOO! FINANCE

 

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