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Do you like to invest with a stock's momentum trends? For ideas on how to start your own momentum search, we ran a screen.

We began by screening the biotech industry for stocks that have outperformed the market over the last quarter, with quarterly performance above 10%.

We then screened for those stocks 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.

Finally, we screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

(click to enlarge)

Tool provided by Kapitall.

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

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

1. Theravance Inc. (THRX): Engages in the discovery, development, and commercialization of small molecule medicines for various therapeutic areas, including respiratory disease, bacterial infections, and central nervous system/pain. Market cap at $1.79B, most recent closing price at $20.00. Performance over the last quarter at 12.63%. Net institutional purchases in the current quarter at 3.9M shares, which represents about 8.24% of the company's float of 47.33M shares. Over the last six months, insiders were net buyers of 10,104,021 shares, which represents about 21.35% of the company's 47.33M share float.

2. Repros Therapeutics Inc. (RPRX): Market cap at $123.6M, most recent closing price at $8.26. Performance over the last quarter at 99.52%. Net institutional purchases in the current quarter at 903.7K shares, which represents about 9.44% of the company's float of 9.57M shares. Over the last six months, insiders were net buyers of 562,500 shares, which represents about 5.88% of the company's 9.57M share float.

3. ZIOPHARM Oncology, Inc. (ZIOP): Focuses on the development and commercialization of in-licensed cancer drugs in North America. Market cap at $408.73M, most recent closing price at $5.05. Performance over the last quarter at 11.50%. Net institutional purchases in the current quarter at 8.7M shares, which represents about 16.07% of the company's float of 54.15M shares. Over the last six months, insiders were net buyers of 1,923,080 shares, which represents about 3.55% of the company's 54.15M share float.

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

Source: 3 Biotech Stocks Outperforming On Insider, Hedge Fund Buying