One of Immunovant’s (NASDAQ:IMVT) directors and more than 10% owner, Roivant Sciences Ltd. (ROIV), recently undertook a huge buy transaction worth $58 million. IMVT stock gained over 2% in yesterday’s extended trade and another 1.5% at the time of writing. It is worth mentioning that Immunovant is a subsidiary of Roivant Sciences, a healthcare company.
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IMVT is a clinical-stage biopharmaceutical company focused on developing treatments for autoimmune diseases.
As per the SEC filing, Roivant Sciences bought 1.5 million shares of the company at a weighted average price of $38 per share on October 2. The total value of IMVT stock in the firm’s portfolio currently stands at $2.74 billion.
The purchase comes after IMVT announced positive pharmacodynamic data for IMVT-1402, a subcutaneously administered drug candidate for autoimmune disease, last week. The Phase 1 trial showed no decline in serum albumin or spikes in bad cholesterol (LDL-C) after 4 weeks of a 300 mg multiple-ascending dose.
Bearish Insider Confidence Signal
Despite Roivant Sciences’ huge buy, IMVT has a bearish insider confidence signal. This is because several insiders lowered their holdings in the stock in the last two months. Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in Immunovant stock is currently Very Negative.
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.
What is the Price Target for Immunovant?
Currently, IMVT stock’s average price target of $39 implies an upside potential of 14.7% from the current level. Furthermore, Immunovant has a Strong Buy consensus rating based on 10 unanimous Buys.
Importantly, hedge funds also increased their holdings of IMVT stock by 1.7 million shares in the last quarter. Moreover, IMVT scores a “Perfect 10” on TipRanks’ Smart Score rating system, pointing to its potential to outperform market averages.
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