When insiders buy their own shares, pay attention. Insiders usually buy their own shares for one reason only: They think the stock is cheap and has huge upside.
One biotechnology player that insiders are active in right now is Bioverativ (BIVV) , which focuses on the research, development and commercialization of therapies for the treatment of hemophilia and other blood disorders.
Bioverativ has a market cap of $6.2 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings ratio of 17.8 times. Its estimated growth rate for this year is 27.8%, and for next year it's pegged at 17%. This is a cash-rich company, since its total cash position is $358.7 million and its total debt is zero.
A director just bought 90,000 shares, or $5.03 million worth of stock, at $55.93 per share.
If you're bullish on Bioverativ, I would look for long-biased trades as long as this stock is trending above some near-term support at $54.10 or at $51.06, and then once it breaks out above its all-time high of $59.50 with volume near or above its three-month average of 1.32 million shares. Some possible upside targets off that breakout are $65 to $70, or even $75 a share.