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Why Are Insiders Bullish on Opko Health?
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Why Are Insiders Bullish on Opko Health?

Story Highlights

Insiders at Opko Health are clearly optimistic about the stock’s near-term prospects. CEO has bought OPK shares totaling 1.3 million shares worth $3.7 million in multiple transactions in the last 30 days.

There is significant insider buying happening in Opko Health (OPK) stock that should ignite investors’ interest.

Based in Florida, U.S., OPKO Health is a medical test and medication company focused on diagnostics and pharmaceuticals. It provides healthcare services through the Diagnostics and Pharmaceuticals segments.

The stock has been volatile over the last 12 months, trading from the lows of $2.45 last month to the highs of $5.25 seen in December last year.

However, the shares are recovering and are back in the green. In fact, insiders at Opko Health are clearly optimistic about the stock’s near-term prospects and have bought stock for a whopping $4.9 million over the past 3 months.

Yesterday, Opko Health CEO Phillip Frost bought 50,000 shares of Opko Health Holdings at $3.02 for a total value of $151,025.

Notably, he has lapped up OPK shares totaling 1.3 million shares worth $3.7 million in multiple transactions in the last 30 days, including yesterday’s transaction.

With his latest Buys and current holding of 229.25 million shares worth $687.76 million, Frost now owns a whopping 33.64%, i.e., over a third of the company.

Furthermore, a fortnight ago, CIO Gary J. Nabel made an Informative Buy spending $217,120 to buy 75,471 shares.

Recent Developments

On May 9, OPK announced that it would acquire privately-held ModeX in a stock transaction worth $300 million in exchange of OPKO common stock.

The acquisition aims at gaining access to proprietary immunotherapy technology as well as enhancing OPK’s portfolio to include cancer and infectious disease products.

On the same day, however, the company reported weaker-than-expected Q1 results, missing both earnings and revenue estimates.

Wall Street’s Take

Overall, the Street has a Moderate Buy consensus rating on OPK based on one Buy and one Hold. The average Opko Health price target of $5 implies a potential upside of 67.22%.

Concluding Thoughts

CEO Phillip Frost is clearly bullish on the stock with his massive Buys over the past month. He believes that ModeX Therapeutics acquisition will bolster its product pipeline to include “multi-specific, multi-functional antibodies focused on a range of cancers and infectious diseases.”

This could add another line of revenue for the company and accelerate growth and profitability in the times to come.

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