ERAS - Why Shares of Erasca Are Jumping Tuesday
2023-10-10 15:56:06 ET
Shares of Erasca (NASDAQ: ERAS) were up more than 12% as of 3 p.m. on Tuesday after a big insider buy. The healthcare company's stock is down more than 43% this year.
Erasca is a clinical-stage precision oncology company that focuses on RAS/MAPK pathway-driven cancers. Jonathan Lim, the chairman and CEO of Erasca, showed his confidence in the company by buying a million shares, with the transaction worth $2,025,999 in a filing reported to the U.S. Securities and Exchange Commission (SEC). After the transaction, Lim owns 19,456,216 shares of Erasca stock.
Investors are often swayed by big insider buys, but they should be wary regarding such decisions as they can be done for reasons other than impending positive news. Erasca focuses on fighting cancer by focusing on the ways the RAS protein operates through a cellular pathway known as mitogen-activated protein kinases (MAPK). Those kinases, in a healthy cell, control cell growth and survival, but in a malignant cell, the MAPK is deregulated.
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Why Shares of Erasca Are Jumping Tuesday