With the market declines we have been seeing for the past several weeks, many stocks are trading well off their recent highs. It's promising to see insiders taking advantage of this recent drop by purchasing shares in some of the names below.
Carter's, Inc. (NYSE:CRI) is trading around $29.71. CRI manufactures apparel and is based in Georgia. The 50-day moving average is $29.91 and the 200-day moving average is $28.58. These shares have traded in a range between $22.19 to $32.88 in the last 52 weeks. CRI is estimated to earn about $1.71 per share in 2011 and $2.13 in 2012. You can see the insider buying here.
A couple of investment funds have been buying millions of dollars worth of shares in Carter's. The heavy and repeated buying is impressive. This stock looks like a buy on any dips and it could be ready to test new highs soon.
Cenveo, Inc. (NYSE:CVO) is trading around $6.17. CVO is a printing company, based in Connecticut. The 50-day moving average is $6.30 and the 200-day moving average is $5.81. These shares have traded in a range between $4.80 to $7.17 in the last 52 weeks. CVO is estimated to earn about 55 cents per share in 2011 and 55 cents in 2012. It looks like insiders must be seeing the possibility of a turnaround for the printing business.
There have been multiple insiders buying, including the CEO, officers, and directors, with the most recent purchase being an officer who bought 17,000 shares, which has a transaction value of about $100,000. You can see the repeated insider buying over the past few months here.
Chesapeake Energy XXI (NYSE:CHK) is trading around $28.51. Chesapeake Energy is a major independent oil and gas company, based in Oklahoma. These shares have traded in a range between $19.68 to $35.95 in the last 52 weeks. The 50-day moving average is $31.20 and the 200-day moving average is $27.43. CHK is estimated to earn about $2.94 per share in 2011, and $3.19 in 2012. You can see the insider buying here.
The CFO and CEO have been buying. Chesapeake has several shale plays: Barnett Shale in the Fort Worth Basin of north-central Texas, Haynesville and Bossier Shales in Louisiana and east Texas, Fayetteville Shale in Arkansas, Marcellus Shale in West Virginia, Pennsylvania, and New York and the Eagle Ford Shale in Texas.
Heelys, Inc., (NASDAQ:HLYS) shares are trading for $1.98. Heelys makes wheeled shoes that are popular with kids and young adults. Heelys is based in Texas. The 52-week range for these shares is $1.97 to $3.63. The book value is $2.82. However, according to Yahoo Finance, Heelys has cash or cash equivalents totalling $67.6 million as of December 31, 2010.
A director and the CFO recently bought shares, although the total amounts are not that significant. If the price goes lower and/or insiders start buying in large amounts, it might make sense to follow them.
Valeant Pharmaceuticals, Inc., (NYSE:VRX) is trading around $50.10. Valeant is a pharmaceutical company, based in Canada. These shares have traded in a range between $14.47 to $55 in the last 52 weeks. The 50-day moving average is $51.64 and the 200-day moving average is $36.97. The book value is stated at $16.24 per share. You can see the repeated insider buying here.
The CFO, an officer and a director have all been buying recently. These shares have seen solid gains in the past few months, so it's impressive to see insiders buying, especially in large amounts.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.