These stocks have seen significant insider buying this past week. Insider buying can be a great sign that a stock is a real value or that it is going higher in the near future. Insiders tend to know their companies better than outsiders or analysts, so when they put their own money in share purchases it can be very meaningful. Some of these companies have moved up recently, so I would wait for pullbacks in those names. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the stocks:
Petrohawk Energy (HK) shares are trading at $24.33. Petrohawk is engaged in oil and natural gas exploration and production. The 50 day moving average is about $24.04 and the 200 day moving average is $19.40. Earnings estimates for HK are about 86 cents per share in 2011 and $1.40 for 2012. You can see the insider buying here.
What Petrohawk insiders and other investors might be seeing: HK might be an interesting target for a major oil or natural gas company. These shares have been considered to be a buyout target by many and this industry has seen a wave of buyout deals. Read more about the latest unconfirmed takeover speculation here.
shares are trading at $13.92. Overstock is an online retailer and is based in Utah. The 50 day moving average is about $14.80 and the 200 day moving average is about $15.24. The 52 week range is $12.42 to $24.19. Earnings estimates are at 35 cents for 2011 and 47 cents for 2012. You can see the insider buying here
What Overstock insiders and other investors might be seeing: Overstock shares have been in a major downtrend and it appears that one insider is doing some bargain hunting.
shares are trading at $10.88. Supervalu is a leading grocery store company and is based in Minnesota. The 50 day moving average is about $9.46 and the 200 day moving average is about $9.65. Earnings estimates for SVU are $1.29 per share in 2011 and $1.19 for 2012, so the PE ratio is about 7 on these shares. Supervalu pays a dividend of about 35 cents per share which is equivalent to a yield of 3.2%. You can see the insider buying here
What Supervalu insiders and other investors might be seeing: These shares became very cheap but have risen since hitting new lows. Even at the $10 level these shares have significant upside if financials results improve. Barron's
recently suggested Supervalu could be a turnaround play, which you can read about here
. While you wait, the dividend is a strong incentive to hold the stock.
Sunstone Hotel Investors, Inc. (SHO),
is trading around $9.84. Sunstone is based in California and invests primarily in upscale hotel properties. These shares have traded in a range between $8.09 to $12.25 in the last 52 weeks. The 50 day moving average is $10.10 and the 200 day moving average is $10.01. The book value is stated at $8.28. You can see the insider buying here
What Sunstone insiders and other investors might be seeing: Room rates have been rising for hotels along with occupancy rates. Financial results have been improving at SHO, read their latest report here
Calyx Inc. (CALX)
is trading around $22.10. Calyx is based in California and provides communications systems. These shares have traded in a range between $9.57 to $22.78 in the last 52 weeks. The 50 day moving average is $19.93 and the 200 day moving average is $15.66. The book value is stated at $6.63. You can see the repeated insider buying here
What Calyx insiders and other investors might be seeing: Calyx is seeing growth in both revenues and profits. According to Yahoo Finance, Calyx is estimated to earn about 91 cents in 2011 and 41.27 in 2012. Revenues are expected to jump from about $409 million in 2011 to $498 million in 2012. You can see those estimates here
. Because these shares are trading well above their moving averages, I would wait for pullbacks before considering a purchase.
The data is sourced from Yahoo Finance, Insidercow.com, Prontosec.com and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.