This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Stocks With Big Insider Buying

Stocks in this article: NSPHPCYCGTXIVTGAEGR

Pharmacyclics

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One name in the biotechnology space that insiders have been loading up on shares of is Pharmacyclics (PCYC), a clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. Insiders seem to have no problem paying up to own shares here since the stock is up over 70% so far in 2011. Whenever I see insiders buying a stock despite the fact that it has already advanced big, I take notice.

Pharmacyclics has a market cap of $629 million and an enterprise value of $561 million. This is a cash-rich company, with over $54 million in cash on their balance sheet and zero debt.

The CEO just bought 678,000 shares, or about $6 millionworth of stock, at $8.85 per share. This same CEO also bought over $6 million worth of stock in PCYC back in June of 2010. The most recent purchase by this CEO was part of a private placement that helped raise over $57.1 million for the company.

From a technical standpoint, this stock is very close to a major breakout if it can manage to take out $10.75 a share on the upside. A move above this level would mark a brand new 52-week high and would likely bring in some momentum traders. It's also worth noting that some huge upside volume has been flowing into this stock for the entire month of June.

If you like this stock, I would trade the breakout if you see big volume flow into this name once it punches above $10.75. Look for volume that's well above the three-month average action of 572,000 shares. Use a mental stop that's a few percent below the breakout level just in case it fails to hold.

This is a heavily shorted stock in which the bears are losing the battle. The current short interest as a percentage of the float is 9.1%. The short-sellers have also been increasing their bets from the last reporting period by 6.2%, or by about 233,000 shares. If PCYC breaks out soon, look for this high short interest to fuel the stock significantly higher.

Pharmacyclics shows up on a recent list of 17 Breakout Stocks to Watch.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs