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The following is a list of oversold stocks, as determined by the Relative Strength, or RSI(14), indicator. All of the stocks mentioned below have RSI(14) values below 40, which usually signals oversold conditions.

All of these stocks have, on average, seen more insider buying than insider selling over the last two years (excluding exercised options). For each company we'll list the average number of shares purchased by insiders on the open market over the last two years.

Insiders seem to be enthusiastic about the prospects of their employers. Do they know something we don't? Full details below.

Insider data sourced from Fidelity, RSI(14) values sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the RSI(14) indicator.

1. OMNOVA Solutions Inc. (NYSE:OMN): Specialty Chemicals Industry. Market cap of $348.05M. RSI(14) at 26.84. Insiders purchased an average of 13,850 shares per year over the last two years. Short float at 2.45%, which implies a short ratio of 3.61 days. The stock has gained 20.9% over the last year.

2. SUPERVALU Inc. (NYSE:SVU): Grocery Stores Industry. Market cap of $1.54B. RSI(14) at 27.11. Insiders purchased an average of 20,400 shares per year over the last two years. Short float at 14.56%, which implies a short ratio of 3.9 days. The stock has lost -52.05% over the last year.

3. Pharmacyclics Inc. (NASDAQ:PCYC): Drug Manufacturer. Market cap of $333.95M. RSI(14) at 28.08. Insiders purchased an average of 493,694 shares per year over the last two years. Short float at 5.57%, which implies a short ratio of 5.06 days. The stock has gained 33.73% over the last year.

4. Stein Mart Inc. (NASDAQ:SMRT): Apparel Stores Industry. Market cap of $367.76M. RSI(14) at 29.2. Insiders purchased an average of 12,363 shares per year over the last two years. Short float at 2.76%, which implies a short ratio of 3.65 days. The stock has lost -16.9% over the last year.

5. Griffon Corporation (NYSE:GFF): General Building Materials Industry. Market cap of $726.8M. RSI(14) at 31. Insiders purchased an average of 55,100 shares per year over the last two years. Short float at 2.99%, which implies a short ratio of 8.36 days. The stock has lost -5.65% over the last year.

6. Overseas Shipholding Group Inc. (OSG): Shipping Industry. Market cap of $1.04B. RSI(14) at 31.62. Insiders purchased an average of 64,400 shares per year over the last two years. Short float at 18.96%, which implies a short ratio of 10.5 days. The stock has lost -28.3% over the last year.

7. Charming Shoppes Inc. (NASDAQ:CHRS): Apparel Stores Industry. Market cap of $357.96M. RSI(14) at 32.58. Insiders purchased an average of 135,250 shares per year over the last two years. Short float at 3.78%, which implies a short ratio of 3.87 days. The stock has lost -46.37% over the last year.

8. MannKind Corp. (NASDAQ:MNKD): Biotechnology Industry. Market cap of $1.14B. RSI(14) at 32.91. Insiders purchased an average of 1,396,833 shares per year over the last two years. Short float at 28.23%, which implies a short ratio of 6.97 days. The stock has lost -15.57% over the last year.

Source: Top 8 Most Oversold Stocks Backed by Insider Buying