By James Dennin for Kapitall.
Insider buying is a very carefully watched metric for anyone
interested in buying small-cap stocks, defined as companies with a
market cap of at most $2-3 billion.
On one hand, insider selling can happen for all kind of reasons,
many of which don't have much to do with the company in question.
Sometimes people just need to rustle up some extra cash.
Insider buying, on the other hand, is a much more telling
metric, as there's really only one reason why you'd buy a whole
bunch of your own company's stock: you expect it to go
But you also have to be very careful when using insider buying
as a metric to analyze stocks. For instance, the size of the
company can make a big difference-the longer the chain of command,
the less any one executive will know about the company's other
When the company is smaller there's a better chance the
purchaser in question has more accurate information about the
company's future prospects. So with that in mind, we rounded up
four small-cap stocks under 10 dollars with insider
Do you think employees are right to bet on their own success?
Use the list below to begin your analysis, and let us know what you
think in the comments.
Click on the interactive chart to view data over
1. Cumulus Media Inc.
): Engages in the acquisition, operation, and development of
commercial radio stations in the United States. Market cap at
$1.44B, most recent closing price at $6.60.
Over the last six months, insiders were net buyers of 1,472,842
shares, which represents about 1.15% of the company's 127.89M share
2. Lionbridge Technologies Inc.
): Provides language, development, and testing services. Market cap
at $387.19M, most recent closing price at $5.99.
Over the last six months, insiders were net buyers of 1,249,383
shares, which represents about 2.7% of the company's 46.23M share
3. Resolute Energy Corporation
): Engages in the acquisition, exploration, exploitation, and
development of oil and gas properties primarily in onshore
properties in the United States. Market cap at $654.53M, most
recent closing price at $8.40.
Over the last six months, insiders were net buyers of 781,700
shares, which represents about 1.6% of the company's 48.71M share
4. SandRidge Energy, Inc.
): Operates as an independent natural gas and oil company in the
United States. Market cap at $3.52B, most recent closing price at
Over the last six months, insiders were net buyers of 4,172,040
shares, which represents about 1.36% of the company's 306.14M share
(List compiled by James Dennin. Monthly returns sourced from
Zacks Investment Research, insider buying sourced from Yahoo!
Finance. All other data sourced from Finviz.)
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