EyePoint Pharmaceuticals (NASDAQ:EYPT) stock was up 3.3% in yesterday’s extended trading session, as one of the company’s more than 10% owners, Cormorant Asset Management, LLC, disclosed an enormous purchase of EYPT stock worth $17.1 million.
Eyepoint is a specialty pharmaceutical company that develops and commercializes ophthalmic products.
Significant Insider Transaction
As per the SEC filing, Cormorant Asset Management bought 855,000 shares of EYPT on January 9 and January 11 at an average price of $19.94 per share. Before this, the insider purchased the company’s shares worth $41.9 million and $10 million in two separate transactions in December 2023. After the latest transaction, the total value of EYPT stock in its portfolio now stands at about $148 million.
It is worth mentioning that the insider’s massive buy comes after EyePoint revealed progress in the Phase 2 VERONA clinical trial of EYP-1901 for diabetic macular edema. The company said it has dosed the first patient and expects to report data in the first quarter of 2025.
As per TipRanks’ database, the investment manager’s overall performance track record shows a 74% success rate over the past three months, with an impressive average return of 17.8% per transaction.
Is EYPT a Buy or Sell?
Overall, analysts have a Strong Buy consensus rating on EYPT stock based on seven unanimous Buys assigned in the past three months. The average EYPT price target of $38 per share implies 86.6% upside potential. Shares have surged over 311% in the past year.
Supporting the bull case, hedge funds increased their holdings of EYPT stock in the last quarter. Furthermore, the stock has a Smart Score of eight, indicating its potential to outperform the market average.
