Insider Buying Surges in Mining, Drilling & Biotech Stocks

Canadian billionaire Eric Sprott, a 10% beneficial owner of Hycroft Mining Holding Corp. (NASDAQ: HYMC), made one of the most significant insider purchases of the past week, acquiring nearly 7.7 million shares at $6.50 per share for a total investment of approximately $50 million. This transaction was part of a public offering that raised approximately $150 million for the Nevada-based gold and silver miner. Following this capital infusion, the company announced it had extinguished all its remaining debt, strengthening its financial position.

The timing of Sprott’s investment appears prescient, with HYMC stock now trading almost a dollar per share higher than his purchase price and showing remarkable momentum. The shares have surged almost 88% over the past 90 days and are up an impressive 167.6% year-over-year. Despite the stock having little analyst coverage and no formal Buy ratings, the consensus price target sits at $13.61, suggesting substantial upside potential. This marks Sprott’s second major investment in Hycroft Mining this summer, following his $62 million purchase earlier in the year.

In a more contrarian move, Pilgrim Global ICAV, a 10% owner of Sable Offshore Corp. (NYSE: SOC), purchased more than 982,600 shares at prices ranging from $14.18 to $15.82, totaling less than $14.8 million. This investment came as the Houston-based offshore oil and gas field operations provider faced significant headwinds, with its stock recently sinking to a 52-week low below $12 amid multiple legal and regulatory challenges.

Despite these challenges and the stock currently trading well below Pilgrim Global’s purchase price range, analysts remain overwhelmingly bullish on Sable Offshore. All five covering analysts recommend buying shares, with Roth Capital recently reiterating its Buy rating. The mean price target of $39.20 represents a potential gain of 207.9% over the next 12 months. The substantial insider buying, which increased Pilgrim Global’s stake to more than 10.9 million shares, occurs against a backdrop of significant short interest, with approximately 24% of all shares held short.

Summit Therapeutics Inc. (NASDAQ: SMMT) saw continued confidence from its leadership team, with co-CEOs Bob Duggan and Maky Zanganeh, along with another director, acquiring approximately 560,300 shares at $18.74 per share through a private placement, totaling around $10.5 million. This insider buying occurred despite the Miami-based biopharmaceutical company posting a wider-than-expected loss for the third quarter and the stock retreating 8.1% in the past week.

The executives’ investment aligns with positive developments in Summit Therapeutics’ pipeline, particularly the recent expansion of Phase 3 trials for its colorectal cancer treatment. Despite recent declines, the stock remains up 8.2% year-to-date and continues to trade above the executives’ purchase price. Analysts maintain an optimistic outlook, with a mean price target of $31.80 representing potential gains of 60.0% in the coming year, though this remains below the stock’s 52-week high of $36.91. This marks the second consecutive month that Duggan and Zanganeh have purchased additional shares.

Beyond these three prominent transactions, insider buying activity extended across multiple sectors and companies. Notable purchases included a 10% owner acquiring over 639,100 shares of Neuphoria Therapeutics Inc. (NASDAQ: NEUP) at prices between $4.96 and $5.20, totaling almost $3.3 million. The executive chairman of Cohen & Steers Inc. (NYSE: CNS) purchased over 40,500 shares between $68.89 and $71.48, representing an investment exceeding $2.8 million.

Additional significant insider activity included a director at Strategy Inc. (NASDAQ: MSTR) acquiring almost 23,800 shares between $96.86 and $97.95 for about $2.3 million, while the CEO of CSX Corp. (NASDAQ: CSX) purchased 55,000 shares between $36.80 and $36.94 for over $2.0 million. A director at Vivani Medical Inc. (NASDAQ: VANI) also demonstrated confidence, acquiring over 1.7 million shares between $1.12 and $1.26 for almost $2.0 million. Smaller insider purchases were also reported at Commercial Metals, Denny’s, Fastenal, Fifth Third Bancorp, Heico, Synovus Financial, Toll Brothers, and Uber.