AVEO Pharmaceuticals has a market cap of $296 million and an enterprise value of $144 million. This stock trades at a premium valuation, with a price-to-sales of 63.55 and a price-to-book of 2.23. Its estimated growth rate for this year is -493.2%, and for next year it's pegged at 29.2%. This is a cash-rich company, since the total cash position on its balance sheet is $189.69 million and its total debt is $25.96 million.
The CEO just
bought 75,000 shares, or about $498,000 worth of stock, at $6.61 to $6.85 per share.
A director also just
bought 15,000 shares, or about $101,000 worth of stock, at $6.65 per share.
From a technical perspective, AVEO is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently formed a double bottom chart pattern at $5.80 to $5.95 a share. Following that bottom, shares of AVEO have started to rebound back towards its 50-day moving average of $7.20 a share.
If you're in the bull camp on AVEO, then I would look for long-biased if this stock manages to break out above some near-term overhead resistance levels at $7.20 to $7.32 share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 322,719 shares. If that breakout triggers soon, then AVEO will set up to re-test or possibly take out its next major overhead resistance levels at $7.82 to $8.25 a share. Any high-volume move above $8.25 to $8.50 will then put $10 a share into focus for shares of AVEO.
One name in the healthcare complex that insiders are jumping into here is
(AKRX - Get Report)
. This company manufactures and markets a full line of diagnostic and therapeutic ophthalmic pharmaceuticals as well as niche hospital drugs and injectable pharmaceuticals. Insiders are buying this stock into some notable strength, since shares are up 20% so far in 2012.
Akorn has a market cap of $1.28 billion and an enterprise value of $1.33 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 46.06 and a forward price-to-earnings of 20.38. Its estimated growth rate for this year is 45.7%, and for next year it's pegged at 29.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $38.4 million and its total debt is $103.65 million.