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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Insiders Love Right Now

Stocks in this article: CLR ESSX ANGI HALO HES

Halozyme Therapeutics

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

Get Adobe Flash player

Another name that insiders are snapping up a large amount of stock in is biotechnology and drugs player Halozyme Therapeutics (HALO), which engages in the research, development and commercialization of recombinant human enzymes that transiently modify tissue under the skin to facilitate injection of other therapies or correct diseased tissue structures for clinical benefits. Insiders are loading up on this stock into some mild weakness since shares are off by around 14% so far in 2012.

Halozyme Therapeutics has a market cap of $871 million and an enterprise value of $781 million. This stock trades at a premium valuation, with a price-to-sales of 16.05 and a price-to-book of 11.09. Its estimated growth rate for this year is -215.8%, and for next year it's pegged at 20%. This is a cash-rich company, since the total cash position on its balance sheet is $116.61 million and its total debt is zero.

A beneficial owner and director just bought 1.1 million shares, or around $7.95 million worth of stock, at $7.35 to $7.50 per share.

>>22 Biopharma Stocks Poised for Breakouts

From a technical perspective, HALO is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been destroyed by the sellers in the last two months and change, with shares dropping from a high of $13.50 to a recent low of $7.71 a share. Shares of HALO also gapped down huge in mid-April from over $11 to $7.51 a share with monster volume.

If you're a bullish on HALO, I would look only look for long-biased trades if this stock can manage to trigger a breakout above some near-term overhead resistance at $8.45, and then above its 200-day moving average of $8.93 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 1,097,330 shares. If we get that action soon, then HALO can attempt to fill some of that gap and potentially trade back above $10 to $11 a share rather quickly. Keep in mind that in order for HALO to challenge that gap it also needs to clear its gap-down day high of $9.20 a share.

I would simply avoid HALO or look for short-biased trades if it fails to trigger that breakout, and then drops below some near-term support at $7.50 to $.7.17 a share with heavy volume. If those support levels are taken out with volume, then HALO could easily drop towards its next significant prior support levels at $6 to $5.50 a share.

Halozyme shows up on a list of 3 Stocks to Buy for Less Than What Insiders Paid.

5 of 6

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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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