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Analysts follow the buying trends of company insiders because insiders know more about their companies than anyone else. If they start buying more company stock, it is a sign that they are more confident in their company’s performance.

With this idea in mind, we screened technically oversold stocks (with RSI(14) below 40) that are being highly shorted (with short float above 15%) 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 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.


(Click to enlarge)

Do you think insiders are calling it right on these names? Use this list as a starting-off point for your own analysis.

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

1. MannKind Corp. (NASDAQ:MNKD): Biotechnology Industry. Market cap of $470.48M. RSI(14) at 38.22. Short float at 26.43%. Net insider purchases over the last six months at 3.48M, which is 4.39% of the company's share float. The stock is a short squeeze candidate, with a short float at 26.43% (equivalent to 19.55 days of average volume). he stock has performed poorly over the last month, losing 12.2%.

2. Echo Global Logistics, Inc. (NASDAQ:ECHO): Trucking Industry. Market cap of $339.92M. RSI(14) at 38.86. Short float at 22.12%. Net insider purchases over the last six months at 202.26K, which is 1.88% of the company's share float. The stock is a short squeeze candidate, with a short float at 22.12% (equivalent to 22.44 days of average volume). It's been a rough couple of days for the stock, losing 10.33% over the last week.

3. Seattle Genetics Inc. (NASDAQ:SGEN): Biotechnology Industry. Market cap of $2.03B. RSI(14) at 35.15. Short float at 18.93%. Net insider purchases over the last six months at 1.48M, which is 1.31% of the company's share float. The stock is a short squeeze candidate, with a short float at 18.93% (equivalent to 12.9 days of average volume). It's been a rough couple of days for the stock, losing 12.25% over the last week.

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

Source: 3 Oversold, Highly Shorted Stocks Being Snapped up by Insiders