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Why RVL Pharmaceuticals Stock is Up 16%, Ahead of Earnings

Story Highlights

Ahead of the second-quarter earnings that will be released tomorrow, four top insiders at RVL Pharmaceuticals lapped up a hefty amount of the company shares yesterday.

A number of executives from top management bought shares of RVL Pharmaceuticals (RVLP) in a series of insider Buys. Topping the Buys were two directors, Sriram Venkataraman and David Burgstahler, who bought shares worth a whopping $12.4 million each. Further, CEO Brian Markison acquired shares worth $1.32 million while EVP and COO Schaub James lapped up shares worth $232,500. Interestingly, these buys come right before the company’s earnings report, scheduled to be released tomorrow.

RVLP shares are trading about 16% higher in today’s trading session so far.

Based in the U.S., RVL Pharmaceuticals, formerly known as Osmotica Pharmaceuticals, is a specialty pharmaceutical company. It engages in the development and commercialization of specialty products that target markets with underserved patient populations in the ocular and medical aesthetics therapeutic areas.

TipRanks’ Insider Trading tool shows insiders at RVL Pharmaceuticals are clearly optimistic about the stock’s near-term prospects and have bought stock worth a whopping $26.4 million yesterday.

Interestingly, TipRanks also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.

Now, let’s take a closer look at the recent events at the company that could have further sparked insiders’ interest in the stock. Last week, the company announced that it secured committed financing of $68.9 million by issuing equity and non-dilutive debt.

RVL CEO Brian Markison stated, “This financing reflects our belief in the brand and meaningfully enhances our financial position as we build momentum with our expanding launch of UPNEEQ. Provider and patient feedback continue to be positive as UPNEEQ awareness grows.”

He further added, “Behind strong sales growth in the first half of this year and the ongoing expansion of our aesthetic team, these financing arrangements provide us with the means to support our commercialization efforts in the eye care and medical aesthetics markets.”

Is RVL Pharmaceuticals Stock a Buy?

Shares of RVL Pharmaceuticals have massively outperformed the market recently, gaining over 56% in the past six months, while the S&P 500 (SPX) is down more than 10%. The stock has picked up a Buy rating from one analyst in the past three months. Douglas Tsao from H.C. Wainwright has a price forecast of $5 which implies a whopping 170% upside potential. Combined with insider buying, the stock is worth considering.

Investors can gain more insights into the RVLP’s growth potential after it reports its second-quarter earnings tomorrow.

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