AEterna Zentaris (AEZS) Stock: Insider Buying In Focus


AEterna Zentaris Inc. (NASDAQ: AEZS)

AEterna Zentaris is having a strong day in the market today, partly as the result of insider buying. The company announced yesterday that several executives have teamed up to purchase a large number of shares in the company. Today, we’ll talk about why insider purchases and insider sales are so important, the insider purchase we saw from AEZS executives, how the market reacted to the news, and what we can expect to see from AEZS moving forward.

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Why Insider Movements Are Important

It’s very common for insiders in any company to buy or sell common stock associated with that company; this is what we’re seeing from AEZS. It’s also very important for investors to watch. The reality is that insiders at any company have far more information than your average investor. When insiders buy shares, they are insinuating that they know something is coming soon that will likely increase the value of the company. Adversely, when insiders sell shares, they are insinuating that something is likely to happen soon that could cause the value of the company to decline. So, the news that we’re seeing from AEterna Zentaris insinuates that the insiders are looking for growth in the near future.

What We’re Seeing From AEZS Insiders

It was announced yesterday that AEZS insiders have made the decision to purchase a large amount of common stock in the company. In fact, the executives purchased 29,535 shares of AEZS in a deal valued at about $90,000. The executives involved include David A. Dodd, Chairman, President and CEO, Jude Dinges, SVP and CCO, and Philip A. Theodore, SVP, CAO and General Counsel at AEterna Zentaris. The amount of shares purchased came in at 16,300, 6,500, and 6,735 shares respectively. As mentioned above, insider buying shows that the insiders are confident that the value of the stock is likely to climb. So, this is great news for AEZS. In a statement, Mr. Dodd recently had the following to say with regard to the company’s growth:

I am personally convinced that our business is strong and improving. The Company has two products in Phase 3 studies and a portfolio of three products that it co-promotes. AEterna Zentaris expects to complete both Phase 3 studies by the end of 2016 and, if the studies meet their primary endpoints, to file NDAs for both products as rapidly as practicable. The Company has sufficient cash on hand to fund operations through the conclusion of the Phase 3 studies and through the first quarter, 2017. During the past few years, the business has been streamlined, eliminating over 50% of headcount in the process. I personally believe that AEterna Zentaris is now a highly focused and much more efficent company. I and other members of the executive management team believed to important to concretely demonstrate to our fellow shareholders our renewed and continued commitment to and confidence in AEterna Zentaris by increasing our personal investment in and exposure to the Company’s Common Shares. We believe that AEterna Zentaris’ outlook is promising and the focus is on continuing to progress on the milestones that are intended to deliver increased value and growth to all shareholders.”

How AEZS Reacted To The News

As investors, we’ve learned that whenever there is positive news released with regard to a publicly traded company, we can expect to see upward movement in the value of the stock as a result. That’s exactly what we’re seeing from AEZS as a result of the insider buying. Currently (10:10), the stock is trading at $3.70 per share after a gain of 3.64% so far today.

What We Can Expect To See From AEterna Zentaris Moving Forward

Moving forward, I have an incredibly bullish opinion of what we can expect to see from AEZS. The reality is that the company has worked hard to build a strong pipeline. Now, they are getting closer and closer to the approval of two products that are likely to lead to strong gains. All in all, the company seems to be moving in the right direction, leading me to expect to see gains in the long run from AEZS.

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What Do You Think?

Where do you think AEZS is headed and why? Let us know your opinion in the comments below!

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