Shares of Cassava Sciences (SAVA) are surging higher in pre-market trading today after director Richard Barry disclosed buying shares worth $860,223.
Cassava Sciences is a clinical-stage biotechnology company with a focus on detecting and treating neurodegenerative diseases, such as Alzheimer’s.
As per a Form 4 filing, Barry purchased 36,159 shares of Cassava at a weighted average price of $23.79 on August 23. Shares were bought in multiple transactions with prices ranging between $23.52 to $23.92.
Post the recent purchases, Barry now owns 186,159 shares of SAVA stock indirectly through a trust. As per TipRanks, this is Barry’s first informative buy of SAVA stock over the past year.
Notably, as per TipRanks’ Insider Trading Activity tool, Insider Signal is currently Very Positive on Cassava Sciences, with corporate insiders buying $3.0 million worth of SAVA stock in the last quarter.
TipRanks’ Insider Trading Activity tool also provides a comprehensive list of daily insider transactions and even shows the top corporate insiders. Interestingly, TipRanks also includes a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Cassava Sciences a Buy or Sell?
The Wall Street community is cautiously optimistic about SAVA stock. On TipRanks, SAVA has a Moderate Buy consensus rating based on three Buys versus one Sell. The average Cassava Sciences price forecast of $50.67 implies a whopping 85.7% upside potential to current levels. Meanwhile, the stock has lost 43.1% so far this year.
What is the future of SAVA stock?
Cassava has an ongoing investigation regarding allegations of manipulation of clinical trial results of its Alzheimer’s drug, simufilam. Recently, the Journal of Prevention of Alzheimer’s Disease (JPAD) announced that on investigation, it did not find any convincing evidence of data manipulation.
The company has constantly denied any wrongdoings in the matter. Remi Barbier, President & CEO of Cassava said, “I’m hopeful that written pronouncements from neutral and independent science experts will help close the chapter of baseless attacks against our science. At some point, it becomes irrational for our detractors to repeat over and over again the same old tired mantra of data manipulation.”
Budding confidence by corporate insiders surely seems to be helping SAVA stock. Moreover, the company is receiving a clean chit from several agencies regarding the allegations, which also bodes well for the stock. Once the company’s drugs are ready and approved by the authorities for commercial use, SAVA stock will see a more stable upward trajectory.
