6 Stocks Reporting Substantial Insider Buying

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 |  Includes: APO, CRI, JOSB, KMX, RRGB, SRPT
by: Rougemont

All of these companies have recently reported substantial insider buying. The fact that insiders are buying these names could be a good sign that there is still significant upside potential in these shares. Some of these stocks like AVI BioPharma (AVII) and CarMax (NYSE:KMX) have fallen recently, and the sell off in those names could be buying opportunities. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the stocks:

AVI BioPharma, Inc. (AVII) is trading at $1.61. Avi Biopharma is a biotechnology company based in Washington. These shares have a 52 week range of $1.11 and $2.74. The 50 day moving average is $1.91 and the 200 day moving average is $1.95, so the shares are trading well below these key support levels. (The stock could drop further.) Earnings estimates for AVII are for a loss of 27 cents per share in 2011 and a loss of 21 cents for 2012. You can see the repeated insider buying here.

Who is buying at AVI BioPharma: A number of insiders have been buying, mostly directors and the CEO. The level of insider buying easily totals more than $300,000 in the past couple of weeks. These purchases appear to be part of a recent stock offering for $1.50 per share by AVII which you can read about here. This stock is trading well below the recent moving averages so I would buy only in stages since these shares are showing signs of weakness, and could dip further to even below $1.50.

Jos. A. Banks Clothiers, Inc. (NASDAQ:JOSB) is trading around $50.34. JOSB operates a chain of clothing stores and is based in Maryland. The 50 day moving average is $46.59 and the 200 day moving average is $42.53. These shares have traded in a range between $35.01 to $52.51 in the last 52 weeks. JOSB is estimated to earn about $3.42 per share in 2011 and $3.76 in 2012. You can see the insider buying here.

Who is buying at Jos. A. Banks: One director bought over $60,000 worth of shares just days ago. This stock is trading well above the recent moving averages, so I would wait for pullbacks before considering a buy here.

CarMax, Inc. (KMX) is trading around $32.21. CarMax is a retailer of new and used vehicles, based in Virginia. The 50 day moving average is $33.92 and the 200 day moving average is $28.94. These shares have traded in a range between $18.62 to $37.02 in the last 52 weeks. KMX is estimated to earn about $1 per share in 2011. You can see the insider buying here.

Who is buying at CarMax: A director recently purchased over $31,000 worth of KMX. These share have dropped below the 50 day moving average so they could remain soft for a while. If they drop to around $29, I would buy more aggressively.

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) is trading around $26.35. Red Robin is a gourmet burger restaurant based in Colorado. The relative strength index is about 65. The 50 day moving average is $23.78 and the 200 day moving average is $21.04. The fact that the 50 day moving average has crossed over the 200 dma indicates a bullish uptrend called a Golden Cross Formation. These shares have traded in a range between $16.85 to $29.10 in the last 52 weeks. RRGB is estimated to earn about $1 per share in 2011. You can see the repeated insider buying here.

Who is buying at Red Robin: A number of insiders have been buying, mostly directors and the level of insider buying easily totals more than $100,000 in the past several weeks alone. This stock is trading well above the recent moving averages, so I would wait for pullbacks before considering a buy here.

Apollo Global Management, LLC. (NYSE:APO) is trading around $18. APO is an investment management company based in New York. This company recently went public. These shares have traded in a range between $17.65 to $19, since going public. Earnings estimates were not available at Yahoo Finance. The book value is stated to be $1.54. You can see the insider buying here.

Who is buying at Apollo: The CFO, directors, and an officer at APO bought millions of dollars worth of shares at the initial public offering price of $19 per share. Since these shares are already trading below that level, I would wait to see where this stock finds support before buying a significant amount of shares.

Carter's, Inc. (NYSE:CRI) is trading around $29.03. CRI manufactures apparel and is based in Georgia. The 50 day moving average is $28.50 and the 200 day moving average is $27.40. These shares have traded in a range between $22.19 to $34.24 in the last 52 weeks. CRI is estimated to earn about $1.84 per share in 2011 and $2.32 in 2012. You can see the insider buying here.

Who is buying at Carter's: A couple of investment funds have been buying millions of dollars worth of shares in Carter's. This stock is trading above the recent moving averages, so I would wait for pullbacks to around $28 before considering a buy here.

The data is sourced from Yahoo Finance and Insidercow.com.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes.