One stock in the health care complex whose insiders have snapped up a large amount of shares of is Synta Pharmaceuticals (SNTA), a biopharmaceutical firm focused on discovering, developing, and commercializing small molecule drugs to extend and enhance the lives of patients with severe medical conditions, including cancer and chronic inflammatory diseases. Insiders are buying into strength here since this stock is up over 47% in the last three months.
Synta Pharmaceuticals has a market cap of $224.82 million and an enterprise value of $190.47 million. This stock trades at a price-to-sales of 27.36 and a price-to-book of 9.13. Its estimated growth rate for this year is -18.3%, and for next year it's pegged at 6.4%. This is a cash-rich company, with a total cash position on its balance sheet of $50.66 million and total debt of $16.8 million.A director and beneficial owner just bought 1.1 million shares, or close to $5 million worth of stock, at $4.40 per share. From a technical standpoint, SNTA is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently bounced off its 50-day at $4.21 and its now moving back above its 200-day of $4.50 a share. Shares of SNTA are also starting to enter a gap down zone between $5 and $4.26 a share. If you're bullish SNTA, I would look to be a buyer of this stock if it can manage to close back above its 200-day moving average of $4.50 on solid volume. Look for volume that registers near or well above its three-month average action of 216,222 shares. If we get that action, then this stock has a good chance to run back towards its nearest overhead resistance levels at $5.15 to $5.23 a share. I would then add to any long positions if those levels are taken out with volume. I would use a mental stop just below near-term support at $4.44, or the 50-day at $4.21 if you want to give it more room. Synta is rated D- sell by TheStreet Ratings.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV