Investing 101: Twelve Rallying Stocks with Insider Buying

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(List compiled by Danny Guttridge. Article by Becca Lipman. Insider data sourced from Yahoo, all other data sourced from Finviz.)

Interested in following the trends of insider buying? Perhaps you prefer stocks in the midst of upward momentum.. If so, this list may be of interest of you.

Below we list the top twelve companies trading on the US stock market rallying above their 20, 50, and 200 day moving averages (MA). What's more, they're experiencing significant levels of insider buying.

Do these two bullish indicators grab your attention?

If you want a more in depth look into the implications of these achievements, see the definitions just below. If not, skip of stocks and their relevant data. Do you think these stocks will continue to rally?

Rallying: When a stock is rallying it means it is performing above its moving average for a given time period. It is presented as a % of performance relative to the average. When a stock is performing above its 20-day moving average (MA) as well as its 50 and 200 day moving averages, it signals bullish momentum. All the stocks in this list are rallying above their 20, 50, and 200-day MA.

Moving Averages, or Simple Moving Averages (MA or SMA) are the average price of the stock over the given time period (generally over the previous 20 days, 50 days or 200 days).
Momentum investing aims to capitalize on the continuance of existing trends and the strength behind it.

Insider Trading: Many analysts follow insider buying trends because, after all, insiders know more about their companies than anyone else. Their investment activity is closely monitored and can tell us a lot about where they feel the business is heading.

Insider buying is represented as a percentage of the share float. Companies experiencing insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. Inversely, insider selling serves as a negative indicator.

Float Short: This is the percentage of share float that is currently being shorted, where share float is the number of shares available for trading.

Now that you're armed with information, use the list below as a starting-off point for your own analysis.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

List sorted by insider buying as a percentage of share float.

1. Lions Gate Entertainment Corp. (LGF): Movie Production Industry. Market cap of $989.0M. The stock is currently trading 2.29% above its 20-Day SMA, 4.57% above its 50-Day SMA, and 9.59% above its 200-Day SMA. Net insider purchases over the last six months at 919.82Kshares, which is 14.31% of the company's 6.43M share float. The stock has gained 10.58% over the last year.

2. Valhi, Inc. (VHI): Synthetics Industry. Market cap of $6.22B. The stock is currently trading 6.56% above its 20-Day SMA, 1.18% above its 50-Day SMA, and 59.41% above its 200-Day SMA. Net insider purchases over the last six months at 109.31Kshares, which is 2.12% of the company's 5.15M share float. The stock has had a couple of great days, gaining 13.73% over the last week.

3. Eca Marcellus Trust I (ECT): Oil & Gas Drilling & Exploration Industry. Market cap of $472.38M. The stock is currently trading 2.68% above its 20-Day SMA, 1.67% above its 50-Day SMA, and 0.28% above its 200-Day SMA. Net insider purchases over the last six months at 209.31Kshares, which is 1.64% of the company's 12.73M share float. The stock has gained 44.77% over the last year.

4. MAKO Surgical Corp. (MAKO): Medical Appliances & Equipment Industry. Market cap of $1.28B. The stock is currently trading 6.67% above its 20-Day SMA, 3.52% above its 50-Day SMA, and 35.46% above its 200-Day SMA. Net insider purchases over the last six months at 485.14Kshares, which is 1.53% of the company's 31.71M share float. The stock has gained 197.01% over the last year.

5. News Corp. (NWSA): Entertainment Industry. Market cap of $43.40B. The stock is currently trading 4.06% above its 20-Day SMA, 1.22% above its 50-Day SMA, and 1.35% above its 200-Day SMA. Net insider purchases over the last six months at 3.64Mshares, which is 0.16% of the company's 2.26B share float. The stock has gained 37.9% over the last year.

6. APAC Customer Services Inc. (APAC): Business Services Industry. Market cap of $434.17M. The stock is currently trading 0.47% above its 20-Day SMA, 11.37% above its 50-Day SMA, and 34.86% above its 200-Day SMA. Net insider purchases over the last six months at 45.0Kshares, which is 0.16% of the company's 28.93M share float. The stock has gained 68.53% over the last year.

7. Susser Holdings Corporation (SUSS): Grocery Stores Industry. Market cap of $354.23M. The stock is currently trading 14.39% above its 20-Day SMA, 19.56% above its 50-Day SMA, and 38.18% above its 200-Day SMA. Net insider purchases over the last six months at 10.0Kshares, which is 0.13% of the company's 7.75M share float. The stock has had a couple of great days, gaining 8.49% over the last week.

8. Hot Topic Inc. (HOTT): Apparel Stores Industry. Market cap of $357.55M. The stock is currently trading 10.36% above its 20-Day SMA, 6.44% above its 50-Day SMA, and 23.48% above its 200-Day SMA. Net insider purchases over the last six months at 40.0Kshares, which is 0.10% of the company's 40.83M share float. The stock has had a couple of great days, gaining 8.12% over the last week.

9. PharMerica Corporation (PMC): Drug Stores Industry. Market cap of $415.87M. The stock is currently trading 18.54% above its 20-Day SMA, 11.49% above its 50-Day SMA, and 16.74% above its 200-Day SMA. Net insider purchases over the last six months at 17.32Kshares, which is 0.06% of the company's 27.16M share float. The stock has had a couple of great days, gaining 28.87% over the last week.

10. Generac Holdings Inc. (GNRC): Electronic Equipment Industry. Market cap of $1.31B. The stock is currently trading 6.04% above its 20-Day SMA, 2.28% above its 50-Day SMA, and 8.25% above its 200-Day SMA. Net insider purchases over the last six months at 15.0Kshares, which is 0.06% of the company's 25.38M share float. The stock has had a couple of great days, gaining 12.36% over the last week.

11. HEICO Corp. (HEI): Aerospace/Defense Products & Services Industry. Market cap of $2.24B. The stock is currently trading 9.77% above its 20-Day SMA, 0.87% above its 50-Day SMA, and 11.46% above its 200-Day SMA. Net insider purchases over the last six months at 20.0Kshares, which is 0.06% of the company's 33.95M share float. The stock has had a couple of great days, gaining 18.98% over the last week.

12. Diamond Foods, Inc. (DMND): Processed & Packaged Goods Industry. Market cap of $1.69B. The stock is currently trading 6.57% above its 20-Day SMA, 2.97% above its 50-Day SMA, and 24.84% above its 200-Day SMA. Net insider purchases over the last six months at 8.23Kshares, which is 0.04% of the company's 19.82M share float. The stock has had a couple of great days, gaining 8.53% over the last week.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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