Halozyme Therapeutics

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In the biotechnology and drugs complex, insiders are buying up a massive amount of stock in Halozyme Therapeutics ( HALO), a biopharmaceutical company developing and commercializing products targeting the extracellular matrix for the diabetes, cancer, dermatology and drug delivery markets. Insiders are loading up into strength here since this stock is up over 23% so far in 2012.

Halozyme Therapeutics has a market cap of $1.21 billion and an enterprise value of $1.15 billion. This stock trades at a rich valuation, with a price-to-sales of 21.17 and a price-to-book of 44.81. Its estimated growth rate for this year is 71.4%, and for next year it's pegged at -187.5%. This is a cash-rich company, since the total cash position on its balance sheet is $66.33 million and its total debt is zero.

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A director and beneficial owner just bought 1.36 million shares, or $14.4 million worth of stock, at $10.61 per share.

From a technical perspective, HALO is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong since it hit a recent low last October at $5.60 a share. Since tagging that low, shares of HALO have been making mostly higher lows and higher highs, which is bullish price action. This stock recently broke out above some near-term overhead resistance at $11.62 a share.

If you're bullish on HALO, I would look for long biased trades as long as the stock is trending above that breakout price of $11.62. If this stock happens to pullback below the breakout price, then I would only get long near its 50-day moving average of $10.18 a share, as long as that moving average isn't violated to the downside.

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