Kodiak Sciences Inc (NASDAQ: KOD) saw its first significant insider transaction since March 18 last week. The transaction comes by a 10% owner, which is a good indication that they’re expecting the price to rise. The last purchase of consequence came near the March low before the stock went on a major run.
After consolidating since mid-July the price finally broke out on Monday on increased volume. The breakout occurred two weeks after an earnings announcement that beat analyst expectations. CEO Victor Perlroth, MD discussed in the company’s August 10 press release:
“There is a high unmet need for a new foundational therapy in the diseases we are exploring with KSI-301, namely wet age-related macular degeneration (wet AMD), diabetic macular edema (DME) and retinal vein occlusion (RVO). With strong physician and patient enthusiasm for KSI-301 and its emerging durability profile, enrollment has been brisk in our DAZZLE wet AMD pivotal study, and we successfully began recruitment in Europe in the second quarter.”
On August 21, Baker Bros. Advisors LP, a 10% owner in the company bought 203,286 shares and increased the company’s position to 10.79 million. The group had previously purchased shares on March 18 and February 26, 2020. Those transactions occurred prior to rallies in the price. Following the purchase in March, the price rose from $35.50 to $68.50.
Action to Take: With the price breaking out, the indication is for the price to make a similar move as it did in March and the insider buying helps provide confirmation. The near-term projection is to retest the June 5 high of $68.50.