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Insiders Pour Million-Plus Dollars into These 2 Stocks — Here’s Why You Should Take Notice

TipRanks
7 min read

How do you find the right stocks to buy? It’s a simple question, but the answer can be challenging. Thankfully, there are numerous signs and signals to help guide your decisions.

One of the clearest signs comes from the corporate insiders, the company officers who operate in the C-suites and the Boardrooms and are responsible not just for the day-to-day operations of their companies but also for ensuring profits and returns for the shareholders. The first point gives them an intimate knowledge of how their company runs and what it has in store; the second ensures that they keep their eyes on the golden ring. Taken together, both points ensure that the insiders will only buy their own stock when they are certain it will gain in value. And that makes the insiders’ trades a valuable signal for the retail investor.

Federal regulations require that corporate officers keep their trades in their own company stock public, which gives us a valuable resource in tracing the insider trades. Using the Insiders’ Hot Stocks tool, available at TipRanks, we’ve looked up the details on some of them – and found that the insiders are pouring millions into two stocks in particular. Let’s take a closer look.

Tectonic Therapeutic (TECX)

We’ll start in the world of biotech and pharmaceutical research, where Tectonic Therapeutics is a clinical-stage research firm working with G-Protein Coupled Receptors, or GPCRs, to develop a line of novel drug candidates. GPCRs are receptor molecules involved in the regulation of multiple features of human biology. They are found on cell surfaces, and their involvement in blood pressure regulation, glucose metabolism, immune function, and neuronal signalling makes them attractive targets for Tectonic’s therapeutic research.

Tectonic’s research program is based on the company’s proprietary tech platform, the GEODe, which it is using to discover and develop new biologic medicines for its clinical pipeline. The company’s drug candidates target conditions with, as the medical jargon puts it, “high unmet medical needs,” meaning that there are no effective treatments, or at best only a few treatments with limited benefits.

The leading candidate in Tectonic’s pipeline, and the only one currently undergoing human clinical trials, is TX45. This drug candidate is being developed and studied as a new treatment for pulmonary hypertension, or high blood pressure in the circulation to the lungs. The drug is described as a “Fc-relaxin fusion protein,” and is potentially the best in its class. Tectonic is studying the drug as an agent to improve patient outcomes for Group 2 pulmonary hypertension by leveraging the vasodilatory and anti-fibrotic properties of relaxin.

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