Antares Pharma: Insiders And Institutions Appear Bullish

Jan. 6.12 | About: Antares Pharma (ATRS)

Antares Pharma (AIS) has been generating quite a buzz lately. Bio-pharma stocks like Antares are open to a lot of speculation, both positive and negative. In my opinion, those who would know the most about the future direction of a company are the insiders and institutional investors.

I have made myself a good amount of money over the years by finding smaller cap growth companies and placing large bets on the ones where I have done the research carefully. The first thing I look for is how insiders and institutional investors feel about the company. First, let's take a look at the Antares insider roster:

Insider Transactions Reported - Last Two Years

Date Insider Shares Type Transaction Value*
Dec 22, 2011 JACOB LEONARD S Director 5,000 Direct Purchase at $1.79 per share. 8,950
Sep 9, 2011 WOTTON PAUL K Officer 45,162 Direct Acquisition (Non Open Market) N/A
Sep 9, 2011 APPLE ROBERT F Officer 40,109 Direct Acquisition (Non Open Market) N/A
Sep 9, 2011 DAVE KAUSHIK J Officer 34,155 Direct Acquisition (Non Open Market) N/A
Aug 12, 2011 JACOB LEONARD S Director 2,000 Direct Purchase at $2.06 per share. 4,120
Jun 1, 2011 DAVE KAUSHIK J Officer 141,552 Direct Statement of Ownership N/A
May 17, 2011 WOTTON PAUL K Officer 68,000 Direct Acquisition (Non Open Market) N/A
May 17, 2011 HOBBS EAMONN P Director 28,012 Direct Acquisition (Non Open Market) N/A
May 17, 2011 SADOWSKI PETER L Officer 32,000 Direct Acquisition (Non Open Market) N/A
May 17, 2011 APPLE ROBERT F Officer 50,000 Direct Acquisition (Non Open Market) N/A
Apr 13, 2011 JACOB LEONARD S Director 10,000 Direct Purchase at $1.58 per share. 15,800
Apr 7, 2011 WOTTON PAUL K Officer 17,370 Direct Acquisition (Non Open Market) N/A
Mar 21, 2011 GARRITY THOMAS J Director 3,000 Direct Purchase at $1.63 per share. 4,890
Mar 18, 2011 GARRITY THOMAS J Director 7,000 Direct Purchase at $1.58 per share. 11,060
Feb 25, 2011 WOTTON PAUL K Officer 52,550 Direct Acquisition (Non Open Market) N/A
Feb 25, 2011 SADOWSKI PETER L Officer 13,418 Direct Acquisition (Non Open Market) N/A
Feb 25, 2011 APPLE ROBERT F Officer 34,040 Direct Acquisition (Non Open Market) N/A
Dec 7, 2010 CARRARA DARIO Officer 68,750 Direct Option Exercise at $0.85 per share. 58,437
Dec 7, 2010 CARRARA DARIO Officer 68,750 Direct Sale at $1.51 per share. 103,812
Nov 11, 2010 SADOWSKI PETER L Officer 8,413 Direct Acquisition (Non Open Market) N/A
Sep 27, 2010 GUETH ANTON Director 8,000 Direct Purchase at $1.41 per share. 11,280
Aug 24, 2010 WOTTON PAUL K Officer 10,000 Direct Purchase at $1.50 per share. 15,000
Aug 16, 2010 JACOB LEONARD S Director 5,000 Direct Purchase at $1.59 per share. 7,949
Jul 21, 2010 APPLE ROBERT F Officer 10,422 Direct Acquisition (Non Open Market) N/A
May 27, 2010 SHROTRIYA RAJESH C Director 29,063 Direct Acquisition (Non Open Market) N/A
May 27, 2010 APPLE ROBERT F Officer 10,155 Direct Acquisition (Non Open Market) N/A
Mar 26, 2010 JACOB LEONARD S Director 5,000 Direct Purchase at $1.45 per share. 7,250
Feb 22, 2010 WOTTON PAUL K Officer 53,846 Direct Acquisition (Non Open Market) N/A
Feb 22, 2010 SADOWSKI PETER L Officer 19,615 Direct Acquisition (Non Open Market) N/A
Feb 22, 2010 APPLE ROBERT Officer 50,419 Direct Acquisition (Non Open Market) N/A
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Click to enlarge

Data provided by EDGAR Online

We can see that there has been only one sale of stock in two years. The rest either bought or acquired stock via stock options and are holding. The insiders are bullish about their company. This is a very positive sign.

Let's take a look at AIS institutional ownership as of 1/4/2012:

AIS Institutional Activity Summary
Stock Trading Score: 3.21 Owners: 120 No Change: 24 (20.00 %)
Buying: 59 (49.16 %) Brand New: 18 (15.00 %) Added More: 41 (34.16 %)
Selling: 37 (30.83 %) Sold Some: 23 (19.16 %) Sold All: 14 (11.66 %)
Click to enlarge
Current shares held by institutions: 43,667,077.
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Roughly 40% of The 103 million shares outstanding are institutionally owned. For a stock selling under $5 a share, this is extremely bullish.

Note the largest amount of institutional activity falls into the buying category.

Let's take a look at recent institutional ownership:

Filed As-Of Form Fullname Owner Return Fund Class Shares Activity
2011-12-29 2011-10-31 N-CSR Nationwide Mutual Funds - Nationwide Small Cap Index Fund 1.36% Small-Cap Core 43240 Added More
2011-12-23 2011-10-31 N-CSR Tiaa Cref Institutional Mutual Funds - Equity Index Fund -1.27% Specialty & Misc 58377 New Holding
2011-12-09 2011-09-30 N-CSRS Rydex Series Funds - Banking Fund 5.98% Financial Services 835 New Holding
2011-11-30 2011-09-30 N-Q Vanguard Index Funds - Vanguard Extended Market Index Fund 15.84% Mid-Cap Core 526974 Added More
2011-11-29 2011-09-30 N-Q John Hancock Trust - Small Cap Index Trust 16.62% Small-Cap Core 57949 Added More
2011-11-29 2011-09-30 N-Q John Hancock Trust - Total Stock Market Index Trust 8.09% Specialty & Misc 2166 New Holding
Click to enlarge

The above table only represents the last 40 days. Take note that end of the year selling on AIS was zero. The amount of shares bought during this time frame is small, but when Institutions normally are selling, we only find buying.

The three largest institutional owners are:

  • Orbimed Advisors Llc 9,094,300 shares
  • Blackrock Institutional Trust Company 2,695,712 shares
  • Deerfield Management Co 2,456,940 shares

Orbimed Advisors LLC is known for being one of the smartest biotech institutional investment group around. I encourage everyone to do the DD on this known opinion. If they are bullish on AIS, then so am I.

I expect Oppenheimer to invest in AIS shortly. The reason I expect this is because Oppenheimer has asked a lot of questions in the last two AIS earnings conference calls. You can listen to these conferences here.

Obviously there are many more things to look at in a company before making an investment besides the insider and institutional shares owned. I will have more articles to come on Antares that will detail why I believe Antares in the long-term will bring huge gains.

In the meantime, I encourage readers to check out the following three articles here on Seeking Alpha that cover Antares:

Article 1 is here

Article 2 is here

Article 3 is here

Stay tuned for more detailed analysis of Antares Pharma and other articles from me here on Seeking Alpha.

Disclosure: I am long AIS.