PHIO

Phio Pharmaceuticals($PHIO) Executives Make Consecutive Purchases After 80% Stock Plunge - Signal of Confidence or Risky Bet?

05/23/2025 13:11

Executives at small-cap biotech firm Phio Pharmaceuticals Corp ($PHIO) are making consecutive insider purchases amid a significant stock price decline, drawing investor attention to the struggling company. According to recent SEC filings, $PHIO Chairman Robert Bitterman made back-to-back purchases on May 21 and May 22. Bitterman acquired 3,000 shares at an average price of $1.77 per share ($5,310 total) on May 21, followed by an additional 1,200 shares at $1.78 per share (approximately $2,136) on May 22. This came after Director Robert Ferrara purchased 2,500 shares at $1.82 per share, totaling $4,550 on May 20. These insider buys gain significance as they occurred after $PHIO's stock had fallen more than 80% from its 52-week high of $9.79. As of May 22, $PHIO was trading at $1.84, representing a roughly 30% decline over the past six months and a staggering 73.79% drop year-over-year. Notably, Chairman Bitterman previously made substantial purchases in June 2024, acquiring 9,000 shares on consecutive days at the much higher prices of $6.75 and $6.66 per share, for a combined investment of approximately $120,690. Shortly afterward, the company implemented a 1-for-9 reverse stock split effective July 5, 2024, to maintain Nasdaq listing compliance, though the stock continued its downward trajectory thereafter. Financially, Phio Pharmaceuticals displays the typical profile of a clinical-stage biotech company. With no revenue, the company posted a net loss of approximately $7.15 million over the trailing twelve months, while maintaining a cash position of $5.38 million. Positively, the company carries no debt and boasts a strong current ratio of 5.65, indicating minimal short-term financial risk. This small-cap biotech firm, with a market capitalization of just $8.79 million, focuses on developing immuno-oncology therapeutics. Its lead pipeline candidates include PH-762, currently in Phase 1b clinical trials, and PH-894, in IND-enabling studies. PH-762 specifically targets PD-1 protein expression to enhance T cell-mediated tumor killing, with potential applications in advanced melanoma and other solid tumors. In its most recent earnings report released in April 2025 for Q4 2024, the company reported a loss of $0.85 per share, showing significant improvement from the year-ago period's $7.65 loss and beating analyst expectations of a $1.23 per share loss. Following this report, the stock temporarily rallied from $1.01 to as high as $2.73. While insider buying doesn't guarantee future stock appreciation, these purchases represent a positive signal that company insiders are willing to invest their personal funds, suggesting confidence in the company's technology and pipeline. Chairman Bitterman, a pharmaceutical industry veteran with previous executive roles at Pfizer and Pharmacia & Upjohn, has demonstrated consistent buying behavior that suggests long-term confidence in the company's value proposition. Investors should weigh these positive signals against the substantial risks inherent in clinical-stage biotech companies. The lone analyst covering the stock maintains a "buy" rating with a 12-month price target of $4.00, suggesting 117% upside from current levels. However, this potential return remains heavily dependent on upcoming clinical trial outcomes. Institutional ownership remains modest at approximately 15.8%, with insider ownership extremely low at just 0.32%. These figures reflect the market's current skepticism toward $PHIO but may also represent potential for increased institutional interest should positive clinical data emerge. Amid uncertain sentiment in the biotech sector, clinical-stage small-caps face particularly high volatility. While industry trends show continued growth in the immuno-oncology market, the funding environment remains challenging. Phio's current cash position likely provides a 12-18 month runway, though additional financing may be required to expand clinical trials. Closely monitoring clinical trial progress and insider trading patterns may serve as a key strategy for investors considering high-risk, high-reward biotech plays like $PHIO.