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Do you like to follow the trends of company insiders?

Insiders, naturally, work at the companies in question and have more knowledge about the firm than outsiders. When they 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.

With that in mind, we wanted to focus on the companies that are bucking the trend.

To create this list, we started with a selection of cash-rich companies. All of these companies have cash holdings that exceed more than 4 quarters of average operating expenses.

To refine the list, we collected data on insider buying, and identified the names that have seen bullishness from company executives, with net insider purchases representing at least 2% of share float.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Inside management thinks these cash-rich companies are due for a rally--do you agree? Use this list as a starting point for your own analysis.

1. Amicus Therapeutics, Inc. (FOLD): Focuses on the discovery, development, and commercialization of orally-administered, small molecule drugs for the treatment of various human genetic diseases. Market cap at $131.74M, most recent closing price at $2.67. Over the last six months, insiders were net buyers of 2,949,580 shares, which represents about 11.93% of the company's 24.73M share float. Average quarterly operating expense over the last five quarters at $18.6M, vs. most recent cash and short term investments at $106.22M, implies a Cash / Avg. Operating Expense ratio at 5.71.

2. Halozyme Therapeutics, Inc. (HALO): Engages in the development and commercialization of recombinant human enzymes that transiently modify tissue under the skin to facilitate injection of other therapies or correct diseased tissue structures for clinical benefits. Market cap at $746.14M, most recent closing price at $6.62. Over the last six months, insiders were net buyers of 1,307,690 shares, which represents about 2.11% of the company's 61.98M share float. Average quarterly operating expense over the last five quarters at $21.68M, vs. most recent cash and short term investments at $87.61M, implies a Cash / Avg. Operating Expense ratio at 4.04.

3. Infinity Pharmaceuticals, Inc. (INFI): Engages in the discovery and development of medicines for the treatment of cancer and other conditions in the United States. Market cap at $1.38B, most recent closing price at $35.04. Over the last six months, insiders were net buyers of 5,158,726 shares, which represents about 23.45% of the company's 22.00M share float. Average quarterly operating expense over the last five quarters at $24.72M, vs. most recent cash and short term investments at $188.77M, implies a Cash / Avg. Operating Expense ratio at 7.64.

4. Janus Capital Group, Inc. (JNS): A publicly owned asset management holding company. Market cap at $1.57B, most recent closing price at $8.37. Over the last six months, insiders were net buyers of 6,158,290 shares, which represents about 3.35% of the company's 184.02M share float. Average quarterly operating expense over the last five quarters at $158.36M, vs. most recent cash and short term investments at $683.6M, implies a Cash / Avg. Operating Expense ratio at 4.32.

5. Nanosphere, Inc. (NSPH): Develops, manufactures, and markets a molecular diagnostics platform, the Verigene System that enables genomic and protein testing on a single platform. Market cap at $159.86M, most recent closing price at $2.85. Over the last six months, insiders were net buyers of 1,924,100 shares, which represents about 4.84% of the company's 39.72M share float. Average quarterly operating expense over the last five quarters at $9.66M, vs. most recent cash and short term investments at $41.92M, implies a Cash / Avg. Operating Expense ratio at 4.34.

6. Repros Therapeutics Inc. (RPRX): Market cap at $266.73M, most recent closing price at $15.58. Over the last six months, insiders were net buyers of 557,500 shares, which represents about 4.38% of the company's 12.72M share float. Average quarterly operating expense over the last five quarters at $3.36M, vs. most recent cash and short term investments at $29.58M, implies a Cash / Avg. Operating Expense ratio at 8.8.

7. Sonus Networks, Inc. (SONS): Provides voice and data infrastructure solutions for wireline and wireless telephone service providers. Market cap at $474.47M, most recent closing price at $1.69. Over the last six months, insiders were net buyers of 8,366,676 shares, which represents about 3.76% of the company's 222.60M share float. Average quarterly operating expense over the last five quarters at $69.34M, vs. most recent cash and short term investments at $279.22M, implies a Cash / Avg. Operating Expense ratio at 4.03.

Source: Insider Buying Trends: Are These Cash Rich Companies Ready To Rally?