The following is a list of small cap stocks that you might want to add to your watchlist. 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.

Based on the enthusiasm of insiders, this list might offer an interesting starting point for your own analysis. Full details below.

Insider data sourced from Fidelity, short float and performance data sourced from Finviz.

*Interactive Chart: Press Play to compare changes in market cap for the top six names mentioned below. Note: The numbers on top of items represent the forward P/E ratio, if available.*

The list has been sorted by the average number of shares purchased by insiders per year over the last two years.

* 1. Chelsea Therapeutics International Ltd. (NASDAQ:CHTP):* Biotechnology Industry. Market cap of $304.61M. Insiders purchased an average of 923,474 shares per year over the last two years. Short float at 10.43%, which implies a short ratio of 7.3 days. The stock has gained 121.43% over the last year.

* 2. Pharmacyclics Inc. (NASDAQ:PCYC):* Drug Manufacturer. Market cap of $310.65M. 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 5.04 days. The stock has gained 30.65% over the last year.

* 3. KIT digital, Inc. (OTC:KITD):* Entertainment Industry. Market cap of $340.91M. Insiders purchased an average of 326,227 shares per year over the last two years. Short float at 23.24%, which implies a short ratio of 17.14 days. The stock has gained 35.62% over the last year.

* 4. GenCorp Inc. (GY):* Aerospace/Defense Industry. Market cap of $314.75M. Insiders purchased an average of 276,712 shares per year over the last two years. Short float at 10.8%, which implies a short ratio of 14 days. The stock has lost -8.64% over the last year.

* 5. Abraxas Petroleum Corp. (NASDAQ:AXAS):* Independent Oil & Gas Industry. Market cap of $325.42M. Insiders purchased an average of 252,882 shares per year over the last two years. Short float at 6.81%, which implies a short ratio of 7.12 days. The stock has gained 117.35% over the last year.

* 6. CIBER, Inc. (NYSE:CBR):* Information Technology Services Industry. Market cap of $338.48M. Insiders purchased an average of 139,640 shares per year over the last two years. Short float at 2.93%, which implies a short ratio of 3.91 days. The stock has gained 35.85% over the last year.

* 7. PHI Inc. (NASDAQ:PHII):* Air Services Industry. Market cap of $333.3M. Insiders purchased an average of 100,500 shares per year over the last two years. Short float at 0.38%, which implies a short ratio of 5.1 days. The stock has gained 13.8% over the last year.

* 8. InnerWorkings Inc. (NASDAQ:INWK):* Business Services Industry. Market cap of $301.49M. Insiders purchased an average of 92,417 shares per year over the last two years. Short float at 19.74%, which implies a short ratio of 58.36 days. The stock has gained 8.37% over the last year.

* 9. PennyMac Mortgage Investment Trust (NYSE:PMT):* REIT Industry. Market cap of $308.66M. Insiders purchased an average of 79,113 shares per year over the last two years. Short float at 2.82%, which implies a short ratio of 6.46 days. The stock has gained 18.55% over the last year.

* 10. Lincoln Educational Services Corporation (NASDAQ:LINC):* Education & Training Services Industry. Market cap of $332.92M. Insiders purchased an average of 74,308 shares per year over the last two years. Short float at 5.81%, which implies a short ratio of 3.54 days. The stock has lost -26.67% over the last year.

* 11. TechTarget, Inc. (NASDAQ:TTGT):* Internet Information Providers Industry. Market cap of $304.09M. Insiders purchased an average of 71,464 shares per year over the last two years. Short float at 1.03%, which implies a short ratio of 7.23 days. The stock has gained 35.29% over the last year.

* 12. PharMerica Corporation (NYSE:PMC)*: Drug Stores Industry. Market cap of $331.2M. Insiders purchased an average of 71,287 shares per year over the last two years. Short float at 7.84%, which implies a short ratio of 8.22 days. The stock has lost -32.21% over the last year.

* 13. Idenix Pharmaceuticals Inc. (NASDAQ:IDIX):* Biotechnology Industry. Market cap of $338.58M. Insiders purchased an average of 52,187 shares per year over the last two years. Short float at 6.7%, which implies a short ratio of 13.87 days. The stock has gained 68.73% over the last year.

* 14. Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB):* Restaurants Industry. Market cap of $327.44M. Insiders purchased an average of 47,894 shares per year over the last two years. Short float at 11.24%, which implies a short ratio of 5.78 days. The stock has gained 13.71% over the last year.

* 15. Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI):* Biotechnology Industry. Market cap of $318.09M. Insiders purchased an average of 40,625 shares per year over the last two years. Short float at 8.23%, which implies a short ratio of 5.61 days. The stock has gained 35.78% over the last year.

* 16. Symmetry Medical, Inc. (NYSE:SMA):* Medical Appliances & Equipment Industry. Market cap of $343.95M. Insiders purchased an average of 25,950 shares per year over the last two years. Short float at 3.6%, which implies a short ratio of 7.74 days. The stock has gained 4.02% over the last year.

* 17. Headwaters Inc. (NYSE:HW):* Conglomerates Industry. Market cap of $324.83M. Insiders purchased an average of 24,626 shares per year over the last two years. Short float at 5.44%, which implies a short ratio of 6.32 days. The stock has lost -8.21% over the last year.

* 18. MedQuist Inc. (PINK:MEDQ.PK):* Healthcare Information Services Industry. Market cap of $339.17M. Insiders purchased an average of 23,528 shares per year over the last two years. Short float at 2.42%, which implies a short ratio of 7.01 days. The stock has gained 121.87% over the last year.

**Disclosure: **I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.