>>5 Stocks Warren Buffett Loves
They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.
See if (AEGR) is in our portfolio
Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share. But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside. The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying. At the end of the day, its large institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity, but it's twice as important to make sure the trend of the stock coincides with the insider buying.Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look at some stocks where insiders have been doing some big buying in per SEC filings.
1 2 3 4 5 6 Next › Last »Aegerion Pharmaceuticals
One biotechnology and drugs player that insiders are buying a large amount of stock in is Aegerion Pharmaceuticals (AEGR). This company focused on the development and commercialization of therapeutics to treat lipid disorders. Insiders are buying this stock into strength, since shares are up over 40% in the last three months.
Aegerion Pharmaceuticals has a market cap of $29 million and an enterprise value of $450 million. Its estimated growth rate for this year is -20.6%, and for next year it's pegged 26.2%. This is a cash-rich company, since the total cash position on its balance sheet is $95.46 million and its total debt is $10.53 million.
A beneficial owner just bought 180,000 shares, or $3.86 million worth of stock, at $19.50 to $22.71 per share. From a technical perspective, AEGR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways for the last month and change, with shares moving between $18.33 on the downside and $23 on the upside. A high-volume move outside of that range soon will likely lead to the next major trend for shares of AEGR. If you're bullish on AEGR, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $22.98 to $23 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 459,973 shares. If that breakout triggers soon, then AEGR will set up to re-test or possibly take out its next major overhead resistance level at $25.92 a share. Keep in mind that traders can also buy AEGR off weakness to anticipate that breakout as long as shares continue to trend above its 50-day at $19.04 a share. Juniper NetworksAnother name in the communications equipment complex that insiders are active in here is Juniper Networks (JNPR). This company designs, develops and sells innovative products and services that together provide its customers with high-performance network infrastructure built on simplicity, security, openness and scale. Insiders are buying this stock into some modest weakness, since shares are off by 11% so far in 2012.
« First ‹ Previous 1 2 3 4 5 6 Next › Last »Juniper Networks has a market cap of $9.31 billion and an enterprise value of $7.14 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 50.73 and a forward price-to-earnings of 16.27. Its estimated growth rate for this year is -33.6%, and for next year it's pegged at 40.5%. This is a cash-rich company, since the total cash position on its balance sheet is $3.15 billion and its total debt is $999.15 million.
A director just bought 16,665 shares, or about $299,000 worth of stock, at $18 per share.
From a technical perspective, JNPR is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways for the last month and change, with shares moving between $19.22 on the upside and $15.77 on the downside. A high-volume move outside of that sideways pattern soon will likely lead to the next major trend for shares of JNPR.
If you're in the bull camp on JNPR, then I would look for long-biased once this stock manages to break out above some near-term overhead resistance levels at $18.35 to $18.53 a share and then once it takes out $19.22 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 7,737,230 shares. If that breakout triggers soon, then JNPR will set up to re-test or possibly take out its next major overhead resistance levels at $20 to $22 a share. LoewsOne name in the insurance complex that insiders are snapping up a decent amount of stock in is Loews (L). This company is engaged in commercial property & casualty insurance, operation of offshore oil & gas drilling rigs, production of natural gas and liquids, operation of interstate natural gas pipeline and operation of hotels. Insiders are buying this stock into some modest strength, since shares are up 9% so far in 2012. Loews has a market cap of $16 billion and an enterprise value of $17.8 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 18.71 and a forward price-to-earnings of 11.86. Its estimated growth rate for this year is -33.6%, and for next year it's pegged at 92.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $7.18 billion and its total debt is $8.88 billion.
« First ‹ Previous 1 2 3 4 5 6 Next › Last »A director just bought 5,000 shares, or about $204,000 worth of stock, at $40.99 per share.
From a technical perspective, L is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been downtrending for the last month and change, with shares dropping from a high of $43.29 to a recent low of $39.50 a share. During that move, shares of L have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of L have started to rebound off that $39.50 low and are now trading within range of triggering a near-term breakout trade.
If you're bullish on L, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance at its 50-day of $41.43 a share with high volume. Look for a sustained move or close above its 50-day with volume that registers near or above its three-month average action of 946,013 shares. If that breakout triggers soon, then L will set up to re-test or possibly take out its next major overhead resistance levels at $42.50 to $43 a share.
Eagle MaterialsAnother name in the raw materials sector that insiders are buying a huge amount of stock in here is Eagle Materials (EXP). This company is a diversified producer of basic building materials and construction products used in residential, industrial, commercial and infrastructure construction. Insiders are buying this stock into big strength, since shares are up a whopping 105% so far in 2012. Eagle Materials has a market cap of $2.60 billion and an enterprise value $2.89 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 54 and a forward price-to-earnings of 19.42. Its estimated growth rate for this year is 172.1%, and for next year it's pegged at 65.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $8.15 million and its total debt is $216.94 million. A director just bought 667,575 shares, or $36.14 million worth of stock, at $54.15 per share. From a technical perspective, EXP is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares soaring from a low of $30.68 to a recent high of $56.40 a share. During that move, shares of EXP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EXP within range of triggering a major breakout trade.
« First ‹ Previous 1 2 3 4 5 6 Next › Last »If you're in the bull camp on EXP, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $55.05 to $56.40 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 700,173 shares. If that breakout triggers soon, then EXP will enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65 a share.
Herbalife
The last name to consider with some big insider buying is Herbalife (HLF). This is a marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products. Insiders are buying this stock into some modest weakness, since shares are off by 8.5% so far in 2012.
Herbalife has a market cap of $5 billion and an enterprise value of $5.21 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 12.04 and a forward price-to-earnings of 10.24. Its estimated growth rate for this year is 21.8%, and for next year it's pegged at 13.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $321.72 million and its total debt is $503.44 million. The chief operating officer just bought 45,516 shares, or $1.99 million worth of stock, at $43.89 per share. From a technical perspective, HLF is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last month and change, with shares dropping from a high of $53.60 to a recent low of $42.18 a share. During that move, shares of HLF were mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of HLF have recently started to rebound sharply off that $42.18 low and the stock is now moving within range of triggering a near-term breakout trade. If you're bullish on HLF, then I would look for long-biased once this stock manages to break out above some near-term overhead at its 50-day of $48.85 and above some more overhead resistance at $48.90 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1,543,200 shares. If that breakout triggers soon, then HLF will set up to re-test or possibly take out its next major overhead resistance levels at $53.19 to its 200-day at $53.77 a share.
« First ‹ Previous 1 2 3 4 5 6 Next › Last »To see more stocks with notable insider buying like Quality Distribution (QLTY), Inphi (IPHI) and Pacific Biosciences of California (PCAB), check out the Stocks With Big Insider Buying portfolio on Stockpickr.
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