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Key insiders have been doing some big buying in
Opko Health(OPK - Get Report), a pharmaceutical and diagnostics company. It is focused on developing a range of solutions, including molecular diagnostics tests, pharmaceuticals and vaccines. This stock has done nothing so far in 2012 since shares are virtually flat on the year.
Opko Health has a market cap of $1.39 billion and an enterprise value of $1.31 billion. This stock trades at a premium valuation, with a price-to-sales of 32.27 and a price-to-book of 13.51. Its estimated growth rate for this year is -50%, and for next year it's pegged at -16.7%. This is a cash-rich company, since the total cash position on its balance sheet is $87.42 million and its total debt is $12.55 million.
The CEO and chairman of the board just
bought 620,000 shares, or $3.08 million worth of stock, at $4.78 to $5.07 per share. This same CEO also bought over $2.5 million worth of stock in February.
From a technical perspective, OPK is currently trading above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has consistently found buying interest over the last six months whenever it has traded down towards $4.65 to $4.80 a share.
If you're bullish on OPK, I would look for long biased trades as long as $4.65 and its 200-day moving average of $4.59 hold up as support levels. If you get a chance to buy near those levels, I would then add to any long positions off on any high-volume strength back above its near-term overhead resistance at $5.08 to $5.53 a share. Look for volume on a move over those levels that are near or well above its three-month average of 1.6 million shares.
Opko, one of
Jana Partners' holdings, was also featured recently in "
12 Bargain Stocks With Insider Support."