Do you like to invest with a stock's technical signals? One idea is to consider whether a stock is technically oversold, measured by the relative strength index.
We ran a screen on technically oversold stocks, with RSI(14) below 40. Finally, we screened for those with optimism from company insiders, with significant net insider purchases over the last six months. When insiders put their own money on the line to purchase their company's shares it indicates they are bullish about the firm's future, and believe current share price is undervalued.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Do you think these stocks are oversold and ready for a turnaround? Use this list as a starting point for your own analysis.
1. Saul Centers Inc. (NYSE:BFS): Operates as a real estate investment trust in the United States. Market cap at $822.86M, most recent closing price at $41.35. Over the last six months, insiders were net buyers of 454,440 shares, (474,390 purchases in 32 transaction, 19,950 sales in 5 transactions) which represents about 5.76% of the company's 7.89M share float. RSI (14) at 37.95.
2. Global Indemnity plc (NASDAQ:GBLI): Provides admitted and non admitted specialty property and casualty insurance products worldwide. Market cap at $548.04M, most recent closing price at $21.50. Over the last six months, insiders were net buyers of 64,837 shares, (all purchases in 5 transaction, 0 sales) which represents about 1.03% of the company's 6.28M share float. RSI (14) at 37.04.
3. Holly Energy Partners L.P (NYSE:HEP): Operates a system of petroleum product and crude oil pipelines, storage tanks, distribution terminals, and loading rack facilities. Market cap at $1.82B, most recent closing price at $64.0. Over the last six months, insiders were net buyers of 1,030,900 shares, (all purchases in 2 transaction, 0 sales) which represents about 6.44% of the company's 16.00M share float. RSI (14) at 38.35.
*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.