One of Zymeworks’ (NASDAQ:ZYME) insiders, Ecor1 Capital, LLC, bought ZYME stock worth $9.7 million. Ecor1 Capital is a more-than-10%-owner of ZYME. Its buy attracted investors’ attention, and the stock rallied a solid 18% in Wednesday’s extended trade and a further 12% at the time of writing.
Zymeworks is a clinical-stage biopharmaceutical company involved in the development of protein therapeutics for the treatment of cancer, autoimmune, and inflammatory diseases.
According to the SEC filing, the hedge fund purchased 985,100 shares of Zymeworks at an average price of $9.84 per share. It is worth mentioning that last week, Ecor1 Capital made another significant insider buy transaction worth $7.87 million. The total value of ZYME shares in the hedge fund’s portfolio currently stands at $95.8 million.
According to TipRanks’ ratings, the fund has a 50% success rate with an average return of 8.9% per transaction.
Overall, corporate insiders have a positive stance on Zymeworks. They have bought ZYME shares worth $25.4 million over the last three months.
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.
Is Zymeworks a Good Stock to Buy?
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on two Buys and four Holds. Zymeworks’ average price target of $10.17 signals that the stock may surge nearly 2% from current levels.
TipRanks data shows that hedge funds are Positive about the company as well. They bought 351.3K shares of the company in the last quarter. Zymeworks scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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