Insider Trends: 5 High Growth Healthcare Stocks With Heavy Insider Buying

Are you looking for high growth stocks within the healthcare sector? The following stock list, which accounts for high earnings growth and internal management purchases could be a great way to jump start your search.

To create this list we started by screening the healthcare sector for companies that are expected to achieve high earnings growth going forward, with 5-year projected EPS growth above 15%.

Next, we looked for stocks with significant net insider purchases over the last six months representing close to 2% of share float or higher. Since insiders work at the companies in question, they have more knowledge about the firm than outsiders. Therefore, when they use their own money to purchase shares of their company's stock, it indicates they are bullish about the firm's future and believe current share price is undervalued. There are also studies that suggest when insider purchases greatly outweigh any insider selling, the stocks are correlated with outperformance in the market during the following six months.

Insiders think these healthcare stocks will live up their high growth expectations. Do you agree?

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1. XOMA Corporation (XOMA, Earnings, Analysts, Financials): Engages in the discovery, development, and manufacture of therapeutic antibodies to treat inflammatory, autoimmune, infectious, and oncological diseases. Market cap at $330.38M, most recent closing price at $4.0.

EPS growth over the next 5 years at 19%.

Over the last six months, insiders were net buyers of 4,722,670 shares, which represents about 9.8% of the company's 48.21M share float.

 

2. Genomic Health Inc. (GHDX, Earnings, Analysts, Financials): Focuses on the development and global commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. Market cap at $1.03B, most recent closing price at $34.15.

EPS growth over the next 5 years at 32.95%.

Over the last six months, insiders were net buyers of 1,188,223 shares, which represents about 7.32% of the company's 16.23M share float.

 

3. Pacific Biosciences of California, Inc. (PACB, Earnings, Analysts, Financials): Develops, manufactures, and markets an integrated platform for genetic analysis. Market cap at $152.04M, most recent closing price at $2.65.

EPS growth over the next 5 years at 30%.

Over the last six months, insiders were net buyers of 1,400,000 shares, which represents about 3.73% of the company's 37.55M share float.

 

4. Forest Laboratories Inc. (FRX, Earnings, Analysts, Financials): Develops, manufactures, and sells branded and generic forms of ethical drug products. Market cap at $10.94B, most recent closing price at $41.08.

EPS growth over the next 5 years at 34.5%.

Over the last six months, insiders were net buyers of 4,035,967 shares, which represents about 1.73% of the company's 233.33M share float. 

 

5. Horizon Pharma, Inc. (HZNP, Earnings, Analysts, Financials): Develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. Market cap at $141.22M, most recent closing price at $2.28.

EPS growth over the next 5 years at 20%.

Over the last six months, insiders were net buyers of 575,356 shares, which represents about 1.5% of the company's 38.35M share float.

6. Ligand Pharmaceuticals Incorporated (LGND, Earnings, Analysts, Financials): Operates as a biotechnology company. Market cap at $664.42M, most recent closing price at $32.91.

EPS growth over the next 5 years at 17%.

Over the last six months, insiders were net buyers of 121,600 shares, which represents about 1.08% of the company's 11.30M share float.

 

(List compiled by Rebecca Lipman. Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.)

Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad: Simply click on the links, and use Kapitall's tab navigation to browse through the data...

 

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