(Written by Rebecca Lipman. List compiled by Eben Esterhuizen, CFA. Data sourced 11/18)
Looking for stocks that have recently exhibited strong bullish momentum?
In search for companies showing significant upward momentum, we ran a screen on stocks exhibiting the technical bullish signal “golden cross,” in which a stock’s 50-day moving average (MA) crosses above its 200-day MA.
This is typically seen as a bullish signal. It is thought to be a significantly favorable turning point, especially if the trend is confirmed by higher trading volume.
The opposite of the golden cross, when the 50 day moving average crosses below the 200 day moving average, is called a “death cross.” This is a serious signal of a downtrend.
Momentum investing aims to capitalize on the continuance of existing trends and the strength behind it. In creating this list of stocks reaching a new “golden cross” status we hope to help investors identify momentum at a moment that indicates it could continue to move higher.
We further screened our list for those with significant levels of insider buying activity.
Investors pay attention to insider activity for a simple reason: If they’re buying, then insiders are confident there is more upside potential, and might have a hunch their stock is going to rally. Of course, these predictions aren’t always realized, but it’s a strong indicator for outsiders to go by.
After all, company insiders such as upper management and members of the company’s board know more about their companies than any other investors.
To illustrate these ideas, we ran a screen on stocks exhibiting the golden cross for those with insider buying interest. The list below includes stocks that have seen significant net insider purchases over the past six months.
Do you think these stocks deserve such widespread optimism?
Use this list as a starting 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 alphabetically.
1. Arabian American Development Company (ARSD): Operates a petrochemical facility located in southeast Texas, which specializes in high purity petrochemical solvents and other solvent type manufacturing. SMA50 at 4.27 vs. SMA200 at 4.17 (current price at 5.91). Over the last six months, insiders were net buyers of 80,126 shares, which represents about 0.46% of the company's 17.44M share float.
2. Bancorp Of New Jersey, Inc. (BKJ): Operates as the holding company for Bank of New Jersey that provides commercial banking services to individuals, businesses, non-profit organizations, and governmental units primarily in Bergen County, New Jersey. SMA50 at 9.42 vs. SMA200 at 9.40 (current price at 10.17). Over the last six months, insiders were net buyers of 4,703 shares, which represents about 0.11% of the company's 4.17M share float.
3. Boston Private Financial Holdings Inc. (BPFH): Operates as the multi-bank holding company in the United States. SMA50 at 6.75 vs. SMA200 at 6.61 (current price at 7.42). Over the last six months, insiders were net buyers of 52,885 shares, which represents about 0.08% of the company's 67.95M share float.
4. Cadence Design Systems Inc. (CDNS): Develops electronic design automation software and hardware for customers worldwide. SMA50 at 10.17 vs. SMA200 at 9.96 (current price at 11.09). Over the last six months, insiders were net buyers of 55,000 shares, which represents about 0.02% of the company's 270.01M share float.
5. Citizens Republic Bancorp, Inc (CRBC): Operates as the bank holding company for Citizens Bank that provides banking and financial services to individuals and businesses in Michigan, Wisconsin, Ohio, and Indiana. SMA50 at 8.16 vs. SMA200 at 8.08 (current price at 10.17). Over the last six months, insiders were net buyers of 118,000 shares, which represents about 0.35% of the company's 33.59M share float.
6. Echo Global Logistics, Inc. (ECHO): Provides technology enabled transportation and supply chain management services in the United States. SMA50 at 14.20 vs. SMA200 at 14.12 (current price at 15.71). Over the last six months, insiders were net buyers of 202,262 shares, which represents about 1.87% of the company's 10.83M share float.
7. US Ecology, Inc. (ECOL): Provides waste treatment, disposal, recycling, and transportation services to commercial and government entities in the United States. SMA50 at 16.70 vs. SMA200 at 16.66 (current price at 17.45). Over the last six months, insiders were net buyers of 19,623 shares, which represents about 0.11% of the company's 17.98M share float.
8. Kearny Financial Corp. (KRNY): Operates as a holding company for Kearny Federal Savings Bank in New Jersey. SMA50 at 9.28 vs. SMA200 at 9.22 (current price at 9.62). Over the last six months, insiders were net buyers of 3,000 shares, which represents about 0.02% of the company's 14.76M share float.
9. Procera Networks, Inc. (PKT): Provides network traffic awareness, analysis, and control solutions for broadband service providers. SMA50 at 10.71 vs. SMA200 at 10.04 (current price at 16.12). Over the last six months, insiders were net buyers of 3,000 shares, which represents about 0.05% of the company's 6.28M share float.
10. QLT Inc. (QLTI): Engages in the development and commercialization of therapies for the eye. SMA50 at 7.11 vs. SMA200 at 7.09 (current price at 6.94). Over the last six months, insiders were net buyers of 258,318 shares, which represents about 0.88% of the company's 29.51M share float.