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One bio therapeutic player that insiders are active in here is
Synta Pharmaceuticals (
SNTA), which is engaged in discovering, developing and commercializing small molecule drugs to extend and enhance the lives of patients with severe medical conditions such as cancer and chronic inflammatory diseases. Insiders are buying this stock into extreme weakness, since shares are off by 48% so far in 2013.
Synta Pharmaceuticals has a market cap of $317 million and an enterprise value of $232 million. This stock trades at a fair valuation, with a price-to-book of 5.35. Its estimated growth rate for this year is -12.3%, and for next year it's pegged at 4.2%. This is a cash-rich company, since the total cash position on its balance sheet is $90.39 million and its total debt is $23.64 million. After you back out the debt, this company has $66.75 million of total cash on its balance sheet.
>>3 Health Care Stocks Trending Higher
A director just
bought 250,000 shares, or about $1.09 million worth of stock, at $4.23 per share. That same director also just
bought 200,000 shares, or about $799,000 worth of stock, at $4 per share.
From a technical perspective, SNTA is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares plunging from its high of $10.74 to its recent low of $3.77 a share. During that downtrend, shares of SNTA have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of SNTA have now entered oversold territory, since its relative strength index is 38.85.
If you're bullish on SNTA, then look for long-biased trades as long as this stock is trending above $4 and then once it breaks out above some near-term overhead resistance at $5 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.42 million shares. If that breakout triggers soon, then SNTA will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 50-day moving average at $7.02 a share.