Insider Trading Report: Precigen (PGEN)

Ares Trading, already a major holder in Precigen (PGEN), recently added another $25 million investment. At that price, the company was able to pick up 6,758,400 shares. That’s a 32 percent increase to the fund’s stake in the company.

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  • The move dwarfs the insider sales in the past month from company insiders. The buy comes as shares of the company have dropped from $15 to under $4 in the past two years. Insiders, including Ares Trading, own over 15 percent of shares.

    Precigen develops gene and cellular therapies, including disease-modifying therapeutics. As an early-stage biotech company, shares are not profitable.

    Action to take: Shares are just under $5 right now. That price alone makes for a reasonable speculation, as the shares don’t have to contend with the time decay that options face. With a large fund making a huge buy, traders should expect market-beating returns, although that may require holding shares for longer than the next upswing.

    For more aggressive traders, the April 2021 $5 calls are at-the-money and trading for about $1.40 right now. That’s a trade that should start moving penny-for-penny with shares as they top $5, and could offer high-double to low-triple digit returns.

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  • With a 52-week high for shares in the $7 range, the trade could fare even better, but options traders should look for a quick swing to take profits.