Insiders are masters of snatching up shares of their companies at a discount, expanding their positions during weakness in the stock. In contrast, they are far less likely to buy into rallies, which makes their occurrence of particular note.
That was exactly the case with recent insider purchases of shares of Evolus Inc (NASDAQ:EOLS), Eli Lilly and Co (NYSE:LLY), and Verastem Inc (NASDAQ:VSTM), two of which have rallied by more than 100% in 2018. We’ll check out those insider purchases below and see what has insiders so excited about these stocks.
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Evolus Inc (NASDAQ:EOLS)
Who Bought Shares: Directors Vikram Malik, Kristine Romine, and Bosun Hao
How Many Shares Were Bought: 8,600, 9,200, and 10,040 shares respectively
Date of the Transaction(s): May 31 – June 14
Insider buying has recently intensified at Evolus Inc (NASDAQ:EOLS), one of the biggest success stories on the market this year. Shares of the medical aesthetics company, which went public in early-February, have surged by nearly 150% in 2018, with all of those gains coming in the last six weeks. That hasn’t stopped several insiders from buying into the rally, with directors Vikram Malik, Kristine Romine, and Bosun Hao purchasing a combined total of 27,840 shares over the past two weeks.
Shares have surged since a setback on May 16 when the FDA slapped a Complete Response Letter (CRL) on Evolus Inc (NASDAQ:EOLS)’s lead compound DWP-450, essentially rejecting it for approval. However, the CRL was actually good news of a sort, as it was entirely related to the company’s Chemistry, Manufacturing, and Controls processes and not the botox treatment’s clinical results. With approval now all but a certainty and investors growing more bullish on the market potential for DWP-450, the stock has enjoyed a rapid run-up since mid-May, even as a large pullback since June 6 has made finding an entry point more palatable.
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On the next page we’ll look at two other companies with recent insider buying activity.