Shares of Annexon, Inc. (ANNX) bounced back 12.5% during the extended trading hours after a major owner bought shares worth $9.42 million.
ANNX closed 14% lower on July 11 at $3.91 after the company closed its private placement securities offering, which resulted in gross proceeds of $130 million.
Annexon, Inc. is a clinical-stage biopharmaceutical company. ANNX develops a pipeline of novel therapies for patients with classical complement-mediated autoimmune, neurodegenerative, and ophthalmic disorders; disorders of the body, brain, and eye.
Insider Buys
Yesterday, ANNX Director, Muneer Satter, who is a major owner of the stock, bought 2.45 million ANNX shares worth a whopping $9.42 million at $3.84 levels.
According to the Tipranks Insider Trading Tool, Satter has been a major buyer of ANNX shares, with a success rate of 100% and an average profit of 21.4%.
With his latest Buys and current position of 4.41 million shares worth $20.02 million, Satter now owns a whopping 11.43%, or over one-tenth of the total shares outstanding.
Recent Developments at ANNX
Yesterday, Annexon closed its private placement offering and raised $130 million before certain expenses.
The company sold 9.01 million shares as well as pre-funded warrants to purchase up to 24.7 million shares and accompanying warrants to buy up to 8.4 million shares. The offering came at a combined price of $3.87 per share for stock and accompanying warrants, and $3.87 for the pre-funded warrant and accompanying common warrants. The accompanying common warrants, which expire on June 30, 2025, come with an exercise price of $5.80 per share and can be exercised immediately.
The proceeds will fund the company’s current operating plan till the second half of 2025 and will support the advancement of a broad pipeline of novel complement product candidates for diseases of the body, brain, and eye.
Wall Street’s Bullish Take on ANNX
Overall, the stock has a Strong Buy consensus rating based on 3 unanimous Buys. The average Annexon Biosciences price target of $20 implies a whopping 411.51% upside potential from current levels.
Hedge Funds Are Buying Up ANNX Stock
Not just insiders, even hedge funds have been buying up the company’s shares. TipRanks data indicates hedge funds have increased holdings in ANNX by 1 million shares in the last quarter, indicating a Very Positive hedge fund confidence signal.
Conclusion
Shares of Annexon Biosciences have lost more than half of their market capitalization over the past six months.
Last month, the company released final data from its open-label Phase 2 clinical trial of ANX005 in patients with Huntington’s disease (HD). The data showed that disease progression stabilized in the overall patient population through the nine-month study.
The insider’s Buys may be an indication of some positive news around the corner.
