Seeking Alpha
Profile| Send Message|
( followers)  

Insider buying can be a great sign that a stock is a real value or that it is probably going higher in the near future. Due to the market correction, some of these stocks have declined substantially from their highs and have recently seen insiders buying shares at prices that appear to be cheap. When you see insider buying at depressed prices, it often means the shares are oversold and offer great long term value. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the stocks:

Navistar International, Inc. (NYSE:NAV) is trading around $58.35. Navistar makes trucks and military vehicles and is based in Illinois. These shares have traded in a range between $40.58 to $71.49 in the last 52 weeks. The 50 day moving average is $62.47 and the 200 day moving average is $58.96. Navistar is estimated to earn $5.50 per share this year and $7.35 for next year. You can see the insider buying here.

What Navistar insiders and other investors might be seeing: Navistar recently traded for around $68, but lately these shares are trading much lower due to concerns over the economy. However, the stock has bounced lately and the concerns over another major recession appear to be overblown. A couple of directors have been buying shares recently and one transaction was for 56,000 shares at $53.97 per share, which has a total value of about $3 million.

Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) shares are trading at $15.54. Aegerion is a biopharmaceutical company, and is based in New Jersey. These shares have traded in a range between $9 to $25.92 in the last 52 weeks. The 50 day moving average is $17.36. Aegerion is estimated to lose about $1.63 per share in 2011 and earn a profit of $1.01 for 2012. You can see the insider buying here.

What Aegerion insiders and other investors might be seeing: These shares have been dropping over the past couple months. It looks like the insiders were taking advantage of the drop and a recent stock offering. The CEO bought about 64,000 shares at $15.50 per share for a total transaction value of about $1 million.

GTx, Inc., (NASDAQ:GTXI) is trading around $4.71. GTx is a biopharmaceutical company, based in Tennessee. These shares have traded in a range between $2.27 to $6.86 in the last 52 weeks. The 50 day moving average is $5.36 and the 200 day moving average is $3.52. Earnings estimates are for a loss of 64 cents for 2011 and 75 cents for 2012. You can see the insider buying here.

What GTx insiders and other investors might be seeing: The chairman recently bought about 975,000 shares for $4.75 per share. This was part of a capital raise by GTx. About 10 million shares were sold at $4.75 per share in order to raise funds for clinical development, research, etc. You can read about that here.

Texas Industries, Inc. (NYSE:TXI) is trading around $42.30. Texas Industries is a leading maker of construction materials and it is based in Texas. These shares have traded in a range between $27.28 to $47.42 in the last 52 weeks. The 50 day moving average is $39.70 and the 200 day moving average is $39.48. Texas Industries is estimated to lose about $1.61 per share in 2011 and 74 cents in 2012. You can see the insider buying here.

I really don't see why Texas Industries insiders and other investors are buying here. This stock looks expensive to me when looking at various metrics such as earnings/PE ratio, etc. In this case the "insider" buying is from Longleaf Partners which is a well known investment fund.

Smithfield Foods, Inc., (NYSE:SFD) is trading around $22.57. Smithfield is a meat company based in Virginia. These shares have traded in a range between $13.34 to $24.93 in the last 52 weeks. The 50 day moving average is $21.30 and the 200 day moving average is $20.27. Earnings estimates are for $2.39 for 2011 and $2.57 for 2012. You can see the insider buying here.

What Smithfield insiders and other investors might be seeing: The CEO recently bought about 20,000 shares for $21.85 per share. This stock has moved up significantly in the past several days with the stock market and is trading well above the moving averages, so it looks like a good time to sell this stock.

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

Disclaimer: The data is sourced from Yahoo Finance and Insidercow.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 only.

Source: 5 Major New Insider Stock Buys