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A biotech stock that insiders are active in here is
Repligen(RGEN - Get Report), which engages in the manufacture and supply of biologic products used to manufacture biologic drugs. Insiders are buying this stock into some solid strength, since shares are up a whopping 78% so far in 2012.
Repligen has a market cap of $191 million and an enterprise value of $166 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 154 and a forward price-to-earnings of 32. This is a cash-rich company, since the total cash position on its balance sheet is $28.38 million and its total debt is zero.
A director just
bought 10,000 shares, or around $60,000 worth of stock, at $6.08 per share.
From a technical perspective, RGEN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending extremely strong for the last three months, with shares soaring higher from a low of $3.78 to its recent high of $6.36 a share. During that uptrend, shares of RGEN have consistently made higher lows and higher highs, which is bullish technical price action. That move has now pushed RGEN within range of triggering a near-term breakout trade.
If you're bullish on RGEN, then I would look for long-biased trades once it manages to break out above some near-term overhead resistance at $6.36 a share with high volume. Look for a sustained move or close above $6.36 with volume that hits near or above its three-month average action of 158,098 shares. If that breakout triggers soon, then RGEN will have a great chance of re-testing or possibly taking out its next major overhead resistance level at $7.29 a share.
Traders can look to buy RGEN off any weakness to anticipate that breakout and simply use a stop that sits just below $5.80 to $5.32 a share. You could also use a stop at around its 50-day moving average of $5.08 a share, depending on if you want to give it more room.
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