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The following is a list of breakout stocks, with their 50-day moving averages (SMA50) recently crossing above their 200-day moving averages (SMA200)--a bullish technical signal called the "Golden Cross".

In addition, 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, as well as the percentage on shares outstanding.

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; moving average, short float, and performance data sourced from Finviz.

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. Note: The numbers on top of items represent the forward P/E ratio, if available.


List sorted by percentage of average insider purchase on shares outstanding.

1. Ormat Technologies Inc. (NYSE:ORA): Electric Utilities Industry. Market cap of $1.38B.

SMA50 at $29.40 vs. SMA200 at $28.71 (current price at $30.30). Insiders bought an average of 853,539 shares over the last two years (1.88% of 45.43M shares outstanding). Short float at 7.59%, which implies a short ratio of 11.85 days. The stock has lost -9.59% over the last year.

Other Highlights:

- Analysts expect the company to generate higher than normal earnings growth in the future. EPS growth for the next year is projected at 16.87%, higher than the industry average at 7.76%. EPS growth over the next five years projected at 9.9%, vs. the industry average at 4.86%.

- The company's capital spending accelerated by 47.99% over the last five years, much faster than the industry average of 7.17%. At least theoretically, this makes them more competitive over the coming years, since their operational assets are more up-to-date.

- When compared to industry competitors, the company reported better than average gross profit margins during the most recent quarter. Gross margins came in at 38.71%, higher than the industry average at 35.28% (most recent quarter, annualized). Operating margin came in at 14.6%, lower than the industry average at 22.65%, while net profit margin came in at 14.6% vs. the industry average at 22.65%.

2. Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB): Restaurants Industry. Market cap of $357.18M.

SMA50 at $20.95 vs. SMA200 at $20.51 (current price at $20.74). Insiders bought an average of 47,894 shares over the last two years (0.28% of 17.09M shares outstanding). Short float at 12.92%, which implies a short ratio of 7.87 days. The stock has gained 11.47% over the last year.

Other Highlights:

- The company appears to be undervalued relative to book value. Price/Book ratio at 1.1, much lower than the industry average of 5.58.

- The company has demonstrated rapid cash flow growth over the last five years, which may lower their risk going forward. Five year average cash flow growth at 10.96%, much higher than the industry average at 6.95%.

3. Chiquita Brands International Inc. (NYSE:CQB): Farm Products Industry. Market cap of $743.66M.

SMA50 at $14.22 vs. SMA200 at $13.51 (current price at $16.49). Insiders bought an average of 116,810 shares over the last two years (0.26% of 45.18M shares outstanding). Short float at 10.74%, which implies a short ratio of 7.75 days. The stock has gained 15.75% over the last year.

Other Highlights:

- The company appears to be undervalued relative to book value. Price/Book ratio at 1.06, much lower than the industry average of 3.49.

- Analysts expect the company to generate higher than normal earnings growth in the future. EPS growth for the next year is projected at 52.94%, higher than the industry average at 15.86%.

4. CNA Financial Corporation (NYSE:CNA): Property & Casualty Insurance Industry. Market cap of $8.13B.

SMA50 at $27.15 vs. SMA200 at $27.14 (current price at $30.12). Insiders bought an average of 272,150 shares over the last two years (0.10% of 269.22M shares outstanding). Short float at 0.37%, which implies a short ratio of 4.7 days. The stock has gained 33.88% over the last year.

Other Highlights:

- The company appears to be undervalued relative to book value. Price/Book ratio at 0.75, much lower than the industry average of 1.33.

- The company's capital spending accelerated by 8.97% over the last five years, much faster than the industry average of 2.22%. At least theoretically, this makes them more competitive over the coming years, since their operational assets are more up-to-date.

- The company outperformed analyst earnings estimates during the most recent quarter, suggesting that the analyst community is underestimating the stock. The company reported earnings per share of $1.21 per share, and exceeded the First Call Consensus of $0.69 (Q4 Earnings on 02/07/11). The company also outperformed analyst estimates over the last year, reporting earnings per share at $2.45, beating the consensus view at $1.68 (based on the estimates of 4 analysts).

5. Zions Bancorp. (NASDAQ:ZION): Regional - Pacific Banks Industry. Market cap of $4.5B.

SMA50 at $23.28 vs. SMA200 at $22.48 (current price at $25.44). Insiders bought an average of 128,026 shares over the last two years (0.07% of 177.96M shares outstanding). Short float at 10.67%, which implies a short ratio of 5.1 days. The stock has gained 40.68% over the last year.

Other Highlights:

- The company has low debt, which significantly reduces its risk over the coming months. During the most recent quarter, the total Debt/Assets ratio stood at 5.63% vs. the industry average at 16.36%. Total Debt/Capital stood at 30.18%, while Total Debt/Equity came in at 62.59%, lower than the industry average at 270.89%. (Note: All ratios based on the most recent quarter, annualized)

- Institutional and mutual fund investors have been net purchasers of the company's shares over the last two quarters, suggesting that the smart money thinks there's more upside to the stock. Institutional investors have been net buyers of 6.5M shares during the most recent quarter, vs. 3.2M net shares purchased in the previous quarter. Mutual fund investors have also been optimistic on the stock. They were net buyers of 4.3M shares during the most recent quarter, vs. 6.0M net shares purchased in the previous quarter.

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

Source: 5 Breakout Stocks Chased by Insiders