Insiders have been doing some decent buying in development-stage biopharmaceutical player Clovis Oncology (CLVS). Insiders are loading up on this stock into strength since shares are up over 33% so far in 2012.
Clovis Oncology has a market cap of $484 million and an enterprise value of $329 million. Its estimated growth rate for this year is 78.4%, and for next year it's pegged at -37.2%. This is a cash-rich company, since the total cash position on its balance sheet is $140.25 million and its total debt is zero.A director just bought 25,000 shares, or $500,000 worth of stock, at $20.00 per share. This company also just announced a secondary offering of 3.75 million shares of common stock priced at $20 per share. >>10 Stocks That Could Rise in Market Decline From a technical perspective, CLVS is currently trading below its 50-day moving average, which is bearish. This stock IPOed back in November of last year, and since then it's soared from a low of $11.45 to a recent high of $27.55 a share. After hitting that high, the stock has dropped sharply with high-volume back below its 50-day to a recent low of $17.85. If you're a bull on CLVS, I would only look for long-biased trades once this stock breaks out above some near-term overhead resistance at $19.20 to $20.50 a share with high volume. Look for volume on that move that's near or well above its three-month average action of 110,405 shares. It's worth pointing out that volume on Wednesday was 140,290 shares and the stock finished near its daily high of $19 a share. If we get that action soon, then this stock has a great chance to make a quick run at its 50-day moving average of $23.08 or possibly higher. I would avoid any long trades in CLVS if this stock drops back below its recent low of $17.85 with volume. The downside could be big if CLVS loses that level since the next major support zone won't come into play until around $15 to $13 a share. Follow @stockpickr
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