7 Outperforming Healthcare Stocks With Strong Insider Buying

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Includes: AGEN, ECYT, ETRM, GHDX, INCY, RPRX, WMGI
by: Kapitall

Wish you could get an inside peak at your favorite companies? One idea is to consider insider stock buying trends.

With this idea in mind, we ran a screen. We began by screening the healthcare sector for stocks that have outperformed the market over the last quarter, with at least a 20% return.

We then screened these names for those with the confidence of their company insiders, such as members of the board and upper management, with significant net insider purchases over the last six months representing at least 2% of share float.

Since most companies only have a handful of company insiders, net insider purchases representing 2% of share float is a big show of confidence in their employer's prospects.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for up to six of the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will continue to outperform? Use this list as a starting point for your own analysis.

List sorted by net insider purchases as a percent of share float.

1. EnteroMedics, Inc. (NASDAQ:ETRM): Focuses on the design and development of devices that use neuroblocking technology to treat obesity and associated co-morbidities, and other gastrointestinal disorders. Market cap at $112.04M, most recent closing price at $2.88. Performance over the last quarter at 30.45%. Over the last six months, insiders were net buyers of 2,933,271 shares, which represents about 21.29% of the company's 13.78M share float.

2. Agenus Inc. (NASDAQ:AGEN): Develops and commercializes immunotherapies for cancer and infectious diseases. Market cap at $143.78M, most recent closing price at $6.22. Performance over the last quarter at 82.66%. Over the last six months, insiders were net buyers of 2,144,705 shares, which represents about 10.71% of the company's 20.03M share float.

3. Repros Therapeutics Inc. (NASDAQ:RPRX): Market cap at $109.37M, most recent closing price at $7.68. Performance over the last quarter at 61.49%. Over the last six months, insiders were net buyers of 750,000 shares, which represents about 7.69% of the company's 9.75M share float.

4. Wright Medical Group Inc. (NASDAQ:WMGI): Engages in the design, manufacture, and marketing of devices and biologic products for the extremity, hip, and knee repair and reconstruction. Market cap at $806.25M, most recent closing price at $20.61. Performance over the last quarter at 26.22%. Over the last six months, insiders were net buyers of 1,922,404 shares, which represents about 6.53% of the company's 29.46M share float.

5. Incyte Corporation (NASDAQ:INCY): Focuses on the discovery and development of proprietary small molecule drugs for hematologic and oncology indications, and inflammatory and autoimmune diseases. Market cap at $2.95B, most recent closing price at $22.91. Performance over the last quarter at 25.72%. Over the last six months, insiders were net buyers of 4,476,050 shares, which represents about 3.54% of the company's 126.59M share float.

6. Genomic Health Inc. (NASDAQ:GHDX): 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 $1.02B, most recent closing price at $33.18. Performance over the last quarter at 20.25%. Over the last six months, insiders were net buyers of 744,007 shares, which represents about 2.7% of the company's 27.57M share float.

7. Endocyte, Inc. (NASDAQ:ECYT): Engages in developing targeted therapies for the treatment of cancer and inflammatory diseases. Market cap at $245.15M, most recent closing price at $6.78. Performance over the last quarter at 86.38%. Over the last six months, insiders were net buyers of 666,000 shares, which represents about 2.51% of the company's 26.54M share float.

*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.