Shares of Tenaya Therapeutics (NASDAQ:TNYA) jumped more than 16% in yesterday’s extended trade after two corporate insiders disclosed having purchased TNYA stock worth $50 million. The biotechnology company develops therapies designed to treat heart disease.
David V. Goeddel, Director and more than 10% owner of TNYA stock, bought 9,615,384 shares of the company for a total value of $25 million. Interestingly, Goeddel has had a 74% success rate in his 47 transactions so far, with an average of 30% return per transaction.
Another insider which owns more than 10% of Tenaya’s shares, COLUMN GROUP III GP, LP, made a similar Buy transaction for $25 million. It is worth noting that Goeddel is one of the managing members of this firm.
The spike in insider buying activity is due to the closing of Tenaya’s underwritten public offering of 22,613,307 shares of its common stock at a price of $2.60 per share. The total gross proceeds from the offering, excluding expenses, stood at $75 million.
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.
Is Tenaya Stock a Good Buy?
Currently, Wall Street is bullish on TNYA stock. It has a Strong Buy consensus rating based on four unanimous Buy recommendations. The average stock price target of $24.50 implies upside potential of 904%.
At present, hedge funds have a neutral stance on TNYA stock. Also, Tenaya scores 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.