One of the major owners at Biomea Fusion (NASDAQ:BMEA) engaged in a huge insider buy transaction yesterday. The biopharma company is focused on developing irreversible small-molecule drugs to treat patients with genetically defined cancers.
Bihua Chen bought 400,000 shares of BMEA stock at an average price of $30 per share, worth $12 million. Following the recent purchase, Chen now owns BMEA shares worth $110.7 million. It is worth mentioning that Chen is also one of Biomea’s directors.
As per the data collected by TipRanks, Chen has had a 43% success rate in her seven transactions over the past year, with an average return of 2% per transaction.
The spike in insider buying activity is due to the closing of Biomea’s underwritten public offering of 5 million shares of its common stock at a price of $30 per share. The total gross proceeds from the offering, excluding expenses, are expected to be $150 million.
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.
Should I Buy or Sell BMEA Stock Right Now?
The company has been witnessing some success of late. Biomea recently announced positive data for Type 2 diabetes candidates. It said that 89% of patients witnessed lower blood glucose levels following four weeks of treatment.
BMEA stock seems to be a decent investment option. It scores a “Perfect 10” Smart Score on TipRanks, which implies that it has strong potential to outperform the market. Further, hedge funds are also Vey Positive on the stock, as evidenced by the fact that they increased their holdings of BMEA stock by 2.1 million shares in the most recent quarter.
Currently, Wall Street is also bullish on BMEA stock. It has a Strong Buy consensus rating based on six unanimous Buys. The average stock price target of $42.17 implies upside potential of 50.6%.
