Heavy Insider Buying Suggests Strong Upside For These 3 Stocks

Let’s now move on to clinical stage medical technology company Medgenics Inc. (NYSEMKT:MDGN), which saw four insiders acquire stock this week. Non-Executive Chairman Sol J. Barer reported the acquisition of 153,846 shares for $6.50 each, all of which were actually purchased by his wife. However, he also owns a direct ownership stake of 407,000 shares, along with an additional 365,854 shares owned indirectly. Moreover, President and Chief Executive Officer Michael F. Cola purchased 38,460 shares at the same price, boosting his stake to 99,436 shares. Lastly, Chief Scientific Officer Garry Arthur Neil and Director Joseph J. Grano Jr. reported acquiring 15,384 shares each at a price of $6.50 per share. The former currently owns 39,774 shares, while the latter holds a direct ownership stake of 55,780 shares plus 15,384 shares through the Grano Family Foundations (the recent purchase was made on the foundation’s behalf). All these insiders acquired the shares through an underwritten public offering that raised capital for product development activities. Thus, their moves might suggest confidence in the capabilities of the company and its team to bring its lead products to the market. Kevin Kotler’s Broadfin Capital is among the largest stockholders of Medgenics Inc. (NYSEMKT:MDGN) within our database, owning 1.11 million shares as of June 30.

Finally, New York REIT Inc. (NYSE:NYRT) Director, Marc J. Rowan, reported the purchase of a new stake of 234,948 shares at prices ranging from $10.49 to $10.75, which is held by estate planning vehicle MJR Funding LLC. It is worth mentioning that the Director exercises the voting and investment control at MJR. The shares of New York REIT are currently trading at relatively the same level as they were trading at the beginning of the year. Earlier this month, the company revealed a handful of governance, strategic, and operations actions that aim to unlock shareholder value and close down the discrepancy between net asset value and market value. As a result, Marc J. Rowan, the co-founder of Apollo Global Management, was appointed to the company’s Board. New York REIT plans to sell some of its assets or sell the entire company so as to create shareholder value. Therefore, Rowan’s purchase is definitely connected to the freshly-announced potential value-unlocking actions. Balyasny Asset Management, founded by Dmitry Balyasny, added a 970,000-share position in New York REIT Inc. (NYSE:NYRT) to its portfolio during the June quarter.

Disclosure: None