Biopharmaceutical company Verona Pharma plc (NASDAQ: VRNA) grabbed many eyeballs after one of its insiders, Access Industries Holdings LLC, recently conducted two back-to-back Buy trades on the stock.
The insider’s trading actions seem to have boosted the price of Verona Pharma’s American Depository Shares (ADSs) by 3.4%, which closed at $12.03 on Wednesday. Also, the company’s ADS gained an additional 3.8% in the extended trading session of the day. Each ADS represents eight ordinary shares of VRNA.
It is worth mentioning that the $729.8-million company works on therapies related to respiratory diseases.
Inside the Headlines
Per TipRanks’ Insiders Trading tool, Access Industries bought 4.8 million shares of VRNA for $6.29 million on August 17. The price per share was $1.31.
Also, the insider purchased 0.6 million shares of VRNA stock for $10.50 per share. The total value of the transaction, executed today, stood at $6.3 million.
Notably, at a time when many top corporate insiders of Verona Pharma are lowering their stakes in the company, Access Industries’ Buy trades on the stock have come as a surprise.
Collectively, insider trading actions on Verona Pharma reveal that $5 million worth of shares have been sold in the last three months. A pictorial representation is provided below.
It is worth mentioning that this insider-friendly stock, as we choose to call it after the trades by Access Industries, completed a public offering of 14.26 million ADS on August 15, 2022. Each ADS was offered to the public for $10.50.
Analysts & Retail Investors Like VRNA Stock
On TipRanks, analysts are unanimously optimistic about the prospects of VRNA, which commands a Strong Buy consensus rating based on four Buys. VRNA’s average price target of $22.67 mirrors 88.45% upside potential. Shares of VRNA have surged a whopping 106% in the past month.
A few days ago, Joon Lee of Truist Securities reiterated a Buy rating on VRNA while increasing the price target to $20 (66.25% upside potential) from $18.
Also, retail investors are Very Positive about VRNA stock. The number of portfolios with investments in VRNA stock has increased 7.1% in the last 30 days.
Is Verona Pharma Stock a Buy Now?
Considering the views of analysts, retail investors, and the purchase transactions by the company’s corporate insider, Verona Pharma stock could be an attractive stock for prospective investors. Also, the company’s Smart Score on TipRanks is ‘eight out of 10’, which mirrors its potential to outperform the broader market.
Read full Disclosure
