Two pages of insider selling and all I have for buying is this? That’s about as clear a message as you’re going to get fan boys. The smart money is clammed up deep except for sticking their necks out to unload a few million dollars here and there. . But that Doesn’t mean there isn’t great profit making opportunities. Take a look at Rapport Therapeutics Inc. (RAPP). Rapport Therapeutics had good news on a recent catalyst: topline results from the Phase 2a trial of RAP-219 in focal onset seizures looked pretty good, or at least good enough to sell 9,615,385 shares of its common stock on September 9th at a public offering price of $26.00 per share.
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This blog is solely for educational purposes and the author’s own amusement. IT IS NOT INVESTMENT ADVICE.
“The insomniac hedge fund guy” is a moniker Harvey Sax, the portfolio manager for The Insiders Fund” has used from time to time on email, blog ,and social media posts. While Mr. Sax is the portfolio manager of The Insiders Fund, these posts are not communications from, nor endorsed by, Alpha Wealth Funds, LLC or any of its managed funds. References to Alpha Wealth Funds or its affiliates are for identification only and do not imply sponsorship or approval.”
Name: Steven M. Paul
Position: Director
Transaction Date: 09-12-2025 Shares Bought: 41,666 shares an Average Price Paid of $24.65 for Cost: $1,027,111
Name: Reid M. Huber
Position: Director
Transaction Date: 09-12-2025 Shares Bought: 20,400 shares an Average Price Paid of $24.48 for Cost: $499,374
Company: Rapport Therapeutics Inc. (RAPP):
Rapport Therapeutics Inc. is a clinical-stage biotechnology company focused on developing small-molecule precision therapeutics for neurological and mental disorders. Its research centers on neural receptor biology, with an emphasis on mapping and targeting receptor complexes composed of primary subunits and receptor-associated proteins that regulate receptor expression and function. Leveraging expertise in RAP biology, the company aims to create medicines with enhanced selectivity for specific receptor variants.
Steve M. Paul, M.D., is the founder and Chairman of the Board of Rapport Therapeutics, appointed to the role in December 2022. He brings more than four decades of experience in research and development, with a strong focus on neuroscience. His career includes leadership positions at Karuna Therapeutics, Eli Lilly & Company, and service as Scientific Director of the National Institute of Mental Health. In addition, he serves as a professor of psychiatry and neurology at Washington University School of Medicine in St. Louis. Dr. Paul earned a Bachelor’s degree in Biology and Psychology from Tulane University, followed by a Master of Science and a Doctor of Medicine from the Tulane University School of Medicine.
Reid M. Huber, Ph.D., is a director of Rapport Therapeutics and a partner at Third Rock Ventures, joining the board in 2022. He brings nearly 25 years of biotechnology experience, including his role as a founding member of Incyte’s scientific team, where he advanced to Executive Vice President and Chief Scientific Officer. Earlier in his career, he conducted research at DuPont Pharmaceuticals and Bristol-Myers Squibb. Dr. Huber holds a B.S. in Molecular Genetics and Biochemistry from Murray State University and a Ph.D. in Human Molecular Genetics from Washington University School of Medicine in St. Louis, followed by postdoctoral training at the National Institutes of Health.
Opinion: Its a bit of a slap in the face when your company does a secondary and management has to resort to buying it below the market a few days latter. What’s really crazy is the stock spiked to over $40 before coming back to earth. At any rate so goes the life of a pre clinic biotech CEO and investor. Buy time and hope for positive results or someone with deep pockets buys the Company before you go bust.
Rapport Therapeutics (RAPP) is a J&J-backed, clinical-stage CNS biotech centered on RAP-219 for drug-resistant focal seizures. It has a narrow but real scientific edge—precision RAP-targeting that delivered promising Phase-1 signals and a fully enrolled Phase-2a (topline readout in Sept-2025). The company raised ~$154M in its 2024 IPO and reported cash of ≈$260M at Q2-2025, which management says funds operations into late-2026. That runway is meaningful but finite: absent a partner or decisive positive data, dilution is likely to fund pivotal work. Recent insider buying (Director Wendy Young, 3,500 shares on 9/11/2025) is a modest positive signal; conversely, short interest is elevated (~18% of float), meaning headline risk is amplified. Valuation must be thought probabilistically — a successful Phase-2 → partner → registration path could create multi-bag upside, while failure will likely collapse enterprise value toward cash plus fundraising dilution. Investors should treat RAPP as a classic binary biotech: high upside if RAP-219 proves durable, safe, and differentiating; high downside if the readout is equivocal or safety issues emerge. If you want, I’ll (a) build a three-scenario probability model (best / base / fail) with per-share outputs, or (b) run sensitivity tables showing implied per-share values under different peak-sales, success probabilities, and partner economics.
Listen to our The Insiders Fund Not So Daily Podcast and Follow us on Twitter for real-time commentary and insider buying alerts at https://twitter.com/theinsidersfund
If you are a QUALIFIED INVESTOR and are interested in learning how you can be part of the Insiders Fund, schedule some time with me here.
This blog is solely for educational purposes and the author’s own amusement. IT IS NOT INVESTMENT ADVICE. Think of the blog as part of my personal investment journal that I am willing to share with the DIY investor. There are also many parts that I am not willing to share if I think it could influence trading action or be detrimental to the Fund’s partners. We could be long, short, or have no position at all in any of the stocks mentioned and express no written or implied obligation to disclose any of that. Nothing contained here constitutes a recommendation to buy or sell any security. Investing involves risk, including the possible loss of principal, and past performance is not indicative of future results.
“The insomniac hedge fund guy” is a moniker Harvey Sax, the portfolio manager for The Insiders Fund” has used from time to time on email, blog ,and social media posts. While Mr. Sax is the portfolio manager of The Insiders Fund, these posts are not communications from, nor endorsed by, Alpha Wealth Funds, LLC or any of its managed funds. References to Alpha Wealth Funds or its affiliates are for identification only and do not imply sponsorship or approval.”
The Insiders Fund and its blogs and posts are not affiliated with, endorsed by, or sponsored by any of the companies mentioned herein. All company names, logos, and trademarks belong to their respective owners. The use of company logos is solely for descriptive and illustrative purposes under fair use. Any information provided is based on publicly available data and should not be considered financial, investment, or legal advice. Readers should conduct their own research or consult with a professional before making any investment decisions.
Insiders sell the stock for many reasons, but they generally buy for just one – to make money. You’ve always heard the best information is inside information. Everyone with any stock market experience pays close attention to what insiders are doing. After all, who knows a business better than the people running it? Officers, directors, and 10% owners are required to inform the public through a Form 4 Filing of any transaction, buy, sell, exercise, or any other within 48 hours of doing so. This info is available for free from the SEC’s Web site, Edgar, although we subscribe to SECForm4 as they provide a way to manage and make sense of the vast realms of data. I’ve tried a lot of vendors. SECForm4 is one of the smaller ones, but I like supporting Frank. He is not arrogant. He’s helpful and has great prices. He also trades on his own data, so I like people that eat what they kill.
The bar is different from selling because the natural state of management is to be a seller. This is because most companies provide significant amounts of management compensation packages as stock and options. Therefore, we analyze unusual patterns with selling, such as insiders selling 25 percent or more of their holdings or multiple insiders selling near 52-week lows. Another red flag is large planned sale programs that start without warning. Unfortunately, the public information disclosure requirements about these programs, referred to as Rule 10b5-1, are horrendously poor. Also, planned sales that pop up out of nowhere are basically sales and are seeking cover under this corporate welfare loophole. I also generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and perhaps not the smart money on which we are trying to read the tea leaves. I say generally because some 10% shareholders are great investors. Think Warren Buffett and others
Of course, insiders can also be wrong about their Company’s prospects. Don’t let anyone fool you into believing they never make mistakes. Do your own analysis. They can easily be wrong, and in many cases, maybe most cases, have no more idea what the future may hold than you or me. In short, you can lose money following them. We have, and we curse aloud; what were they thinking!
We like Fly on the Wall for keeping up with what events might be happening, analysts’ comments, and whatever else could be moving the stock. Dow Jones news service is an essential tool, but many services pick up their feed like they do Bloomberg. For quick financial analysis, it’s hard to beat Old School Value.
A big callout to my assistant Ambreen who sets up this conversation by listing the notable buys that I’ve identified as soon as practically possible. She probes the 10k for a reasonable description of the business. I’ve found that to be the most accurate and succinct place to find out what a business actually does. When I have time, over the weekend, I’ll add some preliminary analysis to the Opinion at the end. Sometimes I won’t update this for a couple of weeks or more. A good way to use this blog is as I do, it’s a reference point and filing cabinet for various stocks with notable insider buying. It’s one of many tools I use. I regularly live on Chat GPT, Gemini, Claude, and occasionally Microsoft Copilot. I find the footnotes research very helpful in eliminating errors from AI hallucinations but these opinions are likely to contain inaccuracies due to the nature of the LLM’s.
The Insiders Fund is for qualified investors and by Prospectus only. Nothing herein should be construed otherwise. THE INSIDERS FUND prefers to invest in companies at or near prices that management has been willing to invest significant amounts of their own money in, but we have no requirement to do so. We also invest in many companies in anticipation of future insider buying or with the expectation that there is none at all.
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Prosperous Trading,
