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Another name that insiders are actively doing some buying in is biotechnology and drugs player
Alkermes(ALKS - Get Report), which is engaged in the business of developing, manufacturing and commercializing medicines for the treatment of prevalent, chronic diseases. This stock is trading virtually flat on the year with shares up just 1% so far.
Alkermes has a market cap of $2.29 billion and an enterprise value of $2.48 billion. This stock trades at a premium valuation, with a price-to-sales of 7.37 and a price-to-book of 2.52. Its estimated growth rate for this year is -29.2%, and for next year it's pegged at 53.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $213.43 million and its total debt is $445.19 million. After you back out the cash, Alkermes has $231.76 million of total debt on its balance sheet.
A director just
bought 20,000 shares, or about $352,000 worth of stock, at $17.59 per share.
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From a technical perspective, ALKS is currently trading right at its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock racked up a solid move higher during the last six months, with shares moving from a low of $13.88 to a recent high of $19.87 a share. After hitting that high, AKLS has started to trend lower and make lower highs, which is bearish technical price action.
If you're bullish on ALKS, then I would look for long-biased trades once it manages to trigger a major breakout trade on a move above $18.84 to $20 a share with high volume Look for volume on that move that's near or well above its three-month average action of 1.1 million shares. If we get that action soon, then this stock could trend back towards its next significant overhead resistance level near $25 a share.
I would simply avoid any long trades in ALKS if it fails to trigger that breakout and then drops below its 200-day moving average of $16.78, and below some near-term support at $16.06 a share with high-volume. A
high-volume move below those levels will set ALKS up for short-biased trades since the next significant support levels are near $15 to $13.88 a share.