TG Therapeutics and ImmunoGen are Models of Institutional Investor Attention

NEW YORK, NY / ACCESSWIRE / March 16, 2017 /
One question many investors have is how much emphasis should be put on insider trading reports and institutional investor activity. The recent activity of TG Therapeutics and ImmunoGen can cause investors to ask even more questions. The general view of insider and institutional activity is “the insider knows best.” That is one reason the SEC requires such activity to be promptly reported. But after comparing the recent stock prices and insider activity of these two stocks, you may end up with more questions than answers.

RDI Initiates
Coverage:

TG Therapeutics Inc. https://ub.rdinvesting.com/news/?ticker=TGTX

ImmunoGen, Inc. https://ub.rdinvesting.com/news/?ticker=IMGN

TG Therapeutics stock rose $1.30 a share to $14.45 in Wednesday’s trading. The company’s lead trial candidate, TG-1101 (ublituximab) continues to gather attention from investors. Wednesday’s close has the stock continuing to soar past its 52 week high of $13.85 on March 10th of this year, and what can be considered to be a wild swing from its 52 week low of $4.10 on Jan 24th of this year. SunTrust Bank has issued a “buy” rating for the stock. Current “buy” recommendations outnumber sell ratings by a 9 to 1 margin in one survey. The current target price for the company ranges from between $15 and $30 per share. However, the optimism is of recent vintage as indicated by the insider trades reported to the SEC in the 4th quarter of last year, including a sale by CFO Sean A. Power of 8,816 shares and Chief Executive Officer Michael S. Weiss of 3,381,866 shares on December 31st. Stay tuned for future SEC filings by the same company officers. The company is facing class action lawsuits for misrepresentation of some of the information for TG-1101 and TGR-1202 and has made a loss of $23.7 million or $0.48 a share higher than average estimate of $0.36 a share. While its announcement to raise $50 million through stock offering will dilute shareholding to certain extent, this proceed along with existing cash balance of $45 million will be sufficient enough to run the normal operations for next 24 months.

Access RDI’s TG Therapeutics Research Report at: https://ub.rdinvesting.com/news/?ticker=TGTX

ImmunoGen closed at $3.76 on Wednesday, down 12 cents a share. The company develops targeted cancer therapeutic drugs using its antibody-drug conjugate (ADC) technology. Recent investment recommendations have Canaccord Genuity giving ImmunoGen a “buy” rating on February 18th, Royal Bank of Canada maintaining its “hold” position on the stock on February 18th, and Morgan Stanley giving it an “underweight” rating on March 1st of this year. The underweight rating by Morgan Stanley is intended to convey expected future performance, with the rated stock expected to perform worse than other companies in its industry. Despite the lowered expectations of a major investment firm, the overall recommendation is a mixed bag. Yet SEC filings report that Director Mark Alan Goldberg bought 20,000 shares on December 15th of last year, while institutional investors Norges Bank and Moloney Securities Asset Management LLC increased their investments in the company. The Phase I data were reported on March 12, but there was nothing particularly remarkable about the information. After hours market activity reflected no change in the stock’s position. Immunogen has made a loss of $34.15 million or $0.39 a share on revenue of $13.85 million for the fourth quarter of 2016 and had $160 million cash available as on December 31, 2016 and it sees revenue for year 2017 to be in the range of $70 to $75 million.

Access RDI’s ImmunoGen Research Report at: https://ub.rdinvesting.com/news/?ticker=IMGN

Our Actionable Research on TG Therapeutics Inc. (NASDAQ: TGTX) and ImmunoGen, Inc. (NASDAQ: IMGN) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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