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Many analysts follow the buying trends of company insiders; after all, insiders know more about their companies than anyone else.

We ran a screen on stocks that have been trading in the red over the last quarter, as well as appearing undervalued relative to earnings growth (with PEG under 1). We screened this universe for those that have seen significant net insider buying over the last six months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

List sorted by net insider buying as a percent of share float.

1. AbitibiBowater Inc. Common Stoc (ABH): Paper & Paper Products Industry. Market cap of $1.90B. PEG at 0.13. The stock has lost 23.65% over the last quarter. Net insider purchases over the six months at 3.61M, which is 4.38% of the company's 82.31M share float. The stock is a short squeeze candidate, with a short float at 9.55% (equivalent to 11.2 days of average volume). The stock is currently stuck in a downtrend, trading 6.67% below its SMA20, 15.09% below its SMA50, and 23.52% below its SMA200.

2. American Superconductor Corporation (NASDAQ:AMSC): Diversified Electronics Industry. Market cap of $384.81M. PEG at 0.29. The stock has lost 39.13% over the last quarter. Net insider purchases over the six months at 1.51M, which is 3.86% of the company's 39.06M share float. The stock is a short squeeze candidate, with a short float at 22.57% (equivalent to 6.21 days of average volume). It's been a rough couple of days for the stock, losing 6.53% over the last week.

3. American International Group, Inc. (NYSE:AIG): Property & Casualty Insurance Industry. Market cap of $52.86B. PEG at 0.28. The stock has lost 14.54% over the last quarter. Net insider purchases over the six months at 6.98M, which is 3.06% of the company's 228.46M share float. The stock has lost 8.38% over the last year.

4. Jefferies Group Inc. (JEF): Investment Brokerage Industry. Market cap of $4.01B. PEG at 0.60. The stock has lost 15.38% over the last quarter. Net insider purchases over the six months at 766.00K, which is 0.41% of the company's 186.33M share float. The stock has lost 12.12% over the last year.

5. PennyMac Mortgage Investment Trust (NYSE:PMT): REIT. Market cap of $454.15M. PEG at 0.38. The stock has lost 7.31% over the last quarter. Net insider purchases over the six months at 77.25K, which is 0.34% of the company's 22.96M share float. The stock has gained 9.07% over the last year.

6. Mercer International Inc. (NASDAQ:MERC): Paper & Paper Products Industry. Market cap of $446.51M. PEG at 0.64. The stock has lost 26.11% over the last quarter. Net insider purchases over the six months at 98.53K, which is 0.28% of the company's 34.60M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.32). The stock has gained 118.9% over the last year.

7. Entercom Communications Corp. (NYSE:ETM): Broadcasting Industry. Market cap of $329.86M. PEG at 0.93. The stock has lost 14.61% over the last quarter. Net insider purchases over the six months at 37.20K, which is 0.19% of the company's 19.10M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.69). The stock is a short squeeze candidate, with a short float at 13.38% (equivalent to 15.53 days of average volume). The stock has gained 5.92% over the last year.

8. Prospect Capital Corporation (NASDAQ:PSEC): Asset Management Industry. Market cap of $963.68M. PEG at 0.55. The stock has lost 11.30% over the last quarter. Net insider purchases over the six months at 128.27K, which is 0.13% of the company's 96.25M share float. The stock is a short squeeze candidate, with a short float at 7.85% (equivalent to 5.11 days of average volume). The stock has gained 13.55% over the last year.

9. MBIA Inc. (NYSE:MBI): Surety & Title Insurance Industry. Market cap of $1.94B. PEG at 0.55. The stock has lost 3.58% over the last quarter. Net insider purchases over the six months at 100.00K, which is 0.07% of the company's 147.75M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.57). The stock is a short squeeze candidate, with a short float at 12.48% (equivalent to 6.78 days of average volume). The stock has had a couple of great days, gaining 7.3% over the last week.

Insider data sourced from Yahoo Finance, all other data sourced from Finviz.

Source: 9 Underperforming, Undervalued Stocks Being Bought by Insiders