Insider Concerns Just Created a Buying Opportunity in RXi Pharmaceuticals Corporation (RXII)

On 07 November, shares of RXi Pharmaceuticals Corporation (NASDAQ:RXII) closed higher after a volatile session. The shares accumulated 0.02 points or 5.12 percent at $0.44 with a light trade volume of 2.8 million shares. After opening the session at $0.432, the shares went as high as $0.47 and as low as $0.43, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.98 million and now has 4.49 million shares outstanding. RXi Pharmaceuticals Corporation (RXII) stock has lost -16.7 percent of market value in 21 trading days.

RXII stock has a trailing 3-year beta of 2.03, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$3.26 a share in the trailing twelve months. The stock’s value has fallen -92.06 percent year to date (YTD) against a decline of -92.76 percent in 12 month’s time. The company’s shares still trade -94.27 percent away from its 1-year high of $7.70 and 10.38 percent up from 52-week low of $0.40. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

RXi Pharmaceuticals Corporation (RXII) will probably climb 354.55 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $16-month high price target. This represents a whopping 3536.36 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $9, which represents a return potential of 1945.45 percent when compared to the closing price of the stock of $0.44 on Wednesday, November 07. The lowest price target for the stock is $2 — slightly more than 354.55 percent from RXII’s current share price.

History has shown that shares in RXi Pharmaceuticals Corporation have gone down on 9 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at RXi Pharmaceuticals Corporation (NASDAQ:RXII) and see the pattern. The earliest insider trade took place on 10/02/2017. Cauwenbergh Geert gathered a total of 10 thousand shares of company at average share price of $0.45. The total for the purchase was set at $4.5 thousand. After this transaction, the President & CEO account balance stood at 147.53 thousand shares. The stock lost -6.67 percent since that insider purchase. On 09/07/2017, Eliseev Alexey, Chief Business Officer, sold 176.8 thousand shares at a price per share of $0.54. This removed 95.47 thousand shares from the insider’s fortune and the stock saw a -22.22 percent retreat in value since the news became public. This transaction left 950.31 thousand shares in the Chief Business Officer account.

On 09/01/2017, Chief Business Officer Eliseev Alexey performed a sale transaction worth $13.22 thousand. This sale at $0.57 each has eliminated 23.2 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -26.32 percent decrease since the transaction was reported. The insider now is left with 1.13 million shares remaining in the account. Cauwenbergh Geert, who performs the President & CEO job, bought 10 thousand shares for $5.5 thousand. The acquisition occurred on 08/24/2017 was priced at $0.55 per share. The share price plunged -23.64 percent since the reporting date. Cauwenbergh Geert now left with a stake of 137.53 thousand RXII stock worth $60.51 thousand after the insider buying.

The stock is currently hovering around the first support level of $0.42. Below this, the next support is placed in the zone of $0.41. Till the time, the RXII stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 33.14 on daily chart, which may remain a cause for comfort. If the price breaks below $0.41 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.46 mark may result into a pull-back move towards $0.49 level.

Further, it is sporting a 20.65 on the Price-to-Sales ratio. Compare this with the industry average P/S of 121.72.