Fairmount Funds Management, a major holder of Viridian Therapeutics (VRDN), recently bought 476,190 shares. The buy increased the fund’s holdings by 35 percent, and came to a total cost of $9,999,990.
This marks the first insider buy since April 2023, when the company CEO bought 4,000 shares for just over $101,000, and also made a $160,000 buy in March 2023. The company’s General Council was a small seller of shares in the past year.
Overall, Viridian insiders own 1.3 percent of shares.
The rare disease-focused biotech company has lost money in the past year, and shares have slid 45 percent, although they have trended higher since their October lows.
While the early-stage drug company hasn’t been profitable or hit any success on any of its drugs, the company has nearly $6 per share in cash and almost no debt.
It won’t need to raise capital at an inopportune time, and can likely see progress on one of its drugs before it has to raise capital again.
Action to take: Speculative investors may like Viridian shares at current prices. The stock is trending higher overall, but has pulled back in recent weeks.
For traders, a call option may better leverage a move higher in the coming months. The April $20 calls are an at-the-money trade. Last going for about $2.75, they could see high double-digit returns from a move higher in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.