Shares of Cerevel Therapeutics (NASDAQ:CERE) gained over 3% in yesterday’s extended trade after one of its Directors, Joseph Edelman, disclosed a massive buy transaction yesterday. The clinical-stage biopharmaceutical company is focused on developing therapies for neurological and neuropsychiatric disorders.
Edelman, through his hedge fund Perceptive Advisors LLC, purchased 876,808 shares of CERE stock at a weighted average price of $22.81 per share on October 16. The transaction’s total value stands at about $20 million.
Importantly, the insider bought shares as part of Cerevel’s underwritten offering of 19.73 million shares, or about $450 million of its common stock.
As per the data collected by TipRanks, the insider has had a success rate of 83% in its transactions over the past three months, with an impressive average return of 121.1% per transaction.
Bullish Insider Confidence Signal
Overall, corporate insiders have bought Cerevel stock worth $22.5 million over the last three months. TipRanks’ Insider Trading Activity Tool shows that insider confidence in Cerevel is currently Positive.
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 Cerevel Therapeutics a Buy?
Cerevel Therapeutics Holdings has multiple drugs in its development pipeline. Positive results from these trials could significantly enhance CERE stock’s performance. Also, the company’s financial position remains strong.
On TipRanks, CERE stock has a Moderate Buy consensus rating based on four Buys and four Holds. The average stock price target of $33.50 implies 47.4% upside potential. The stock is down more than 26% so far in 2023.
Importantly, hedge funds increased their holdings of CERE stock by buying 3.6 million shares in the last quarter. Furthermore, the stock has a TipRanks’ Smart Score of eight, indicating its potential to outperform market averages.
