One of Soleno Therapeutics(NASDAQ:SLNO) more than 10% owners, Perceptive Advisors LLC, bought 866,789 million shares for a total value of $15.1 million. Importantly, the insider started purchasing Soleno’s shares following the release of positive top-line results for its lead candidate DCCR in Prader-Willi syndrome, a rare condition present from birth. SLNO stock has skyrocketed by about 522% since the data release on September 26.
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The clinical-stage biopharmaceutical company is focused on developing and commercializing novel therapeutics for rare diseases.
Perceptive Advisors purchased SLNO’s shares on September 26 and 28 in multiple transactions and at prices ranging from $6.95 to $21.40. Another insider, Vivo Opportunity, LLC., exercised 3,203,093 warrants at a price of $1.75 per share on September 26.
Analysts’ Take
Following the release of positive results for DCCR in Prader-Willi syndrome, three analysts rated the stock a Buy and increased their price targets. Among these, analyst Yale Jen from Laidlaw expects a high likelihood of DCCR receiving the FDA’s approval. Also, Jen noted the strong commercial potential of the drug due to the limited competition in this space.
Thus, based on the bullish moves of analysts and insiders, it is reasonable to assume that SLNO stock has more room for upside. Investors could keep close track of these notable insider activities, as they reflect the perception of key insiders about the company’s future prospects.
What is the Price Forecast for SLNO Stock?
Currently, SLNO stock’s average price target of $37.67 implies an upside potential of 36.5% from the current level. Furthermore, it has a Strong Buy consensus rating based on three unanimous Buys.
Overall, the stock seems to be a decent investment option. It scores an Outperform Smart Score of nine on TipRanks, which implies that it has strong potential to beat the market. Further, hedge funds have increased their holdings of SLNO stock by 2.1 million shares in the most recent quarter.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
