Corcept Therapeutics: 4 Different Insiders Have Purchased Shares During The Last 30 Days

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 |  About: Corcept Therapeutics Incorporated (CORT)
by: Markus Aarnio

Summary

4 insiders purchased Corcept stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

2 of these 4 insiders increased their holdings by more than 10%.

Corcept Therapeutics (NASDAQ:CORT) is engaged in the discovery, development, and commercialization of drugs for the treatment of metabolic, psychiatric, and oncologic disorders in the United States.
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Insider buying during the last 30 days

Here is a table of Corcept's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Joseph Cook Director May 9-13 200,000 2,040,826
shares
+10.9%
Daniel Bradbury Director May 9-12 138,925 317,925 shares +77.6%
David Mahoney Director May 9 100,000 1,119,533 shares +9.8%
Leonard Baker Director May 9 100,000 8,687,453 shares +1.2%
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There have been 538,925 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Corcept's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
May 2014 538,925 250,000
April 2014 0 250,000
March 2014 0 250,000
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 10,000 0
February 2013 0 0
January 2013 0 0
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There have been 548,925 shares purchased, and there have been 750,000 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Corcept reported the first-quarter financial results on May 7, with the following highlights:

Revenue $4.4 million
Net loss $13.9 million
Cash $43.6 million
Debt $35.1 million
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On May 7, Corcept also reported that it is discontinuing its Phase III psychotic depression study, based on the recommendation of the study's data monitoring committee that the study was unlikely to meet its primary endpoint with statistical significance. The four insiders purchased their shares after these results.

Outlook

Corcept's 2014 revenue guidance is $25 million to $29 million. The company believes it will reach cash flow breakeven without having to raise additional funds.

Pipeline and upcoming milestones

Corcept has one approved product, Korlym, for treatment of hyperglycemia. Corcept's study of mifepristone in the treatment of triple-negative breast cancer should yield initial efficacy results in the first half of 2015. The company will also move two of its next-generation compounds into the clinic this year.

Conclusion

There have been four different insiders buying Corcept, and there have not been any insiders selling Corcept during the last 30 days. Two of these four insiders increased their holdings by more than 10%. Corcept has an insider ownership of 35.55%.

The four insiders purchased their shares at prices ranging from $1.79 to $1.85. I believe Corcept could be a good pick below $1.85, based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CORT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.