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When a firm announces that it is being taken over or acquired by another firm, the target’s stock often jumps in price to reflect the takeover premium paid by the acquirer. This is why analysts speculate about potential takeover/leveraged buyout targets.

We created a universe of rumored potential takeover/LBO targets from various sources including Minyanville and Seeking Alpha and screened for those companies that have seen significant net insider buying over the last six months.To access the complete list of takeover targets, click here.

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.



Do you think these companies are likely to get taken over? Use this list as a starting point for your own analysis.

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

1. Saks Incorporated (SKS): Department Stores Industry. Market cap of $1.84B. Takeover/LBO rumor sourced from Seeking Alpha. Net insider purchases over the last six months at 4.70M, which is 4.41% of the company's share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.63). The stock is a short squeeze candidate, with a short float at 23.61% (equivalent to 10.7 days of average volume). The stock has gained 42.41% over the last year.

2. Seattle Genetics Inc. (SGEN): Biotechnology Industry. Market cap of $2.05B. Takeover/LBO rumor sourced from Minyanville. 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 12.73 days of average volume). It has been a rough couple of days for the stock, losing 11.56% over the last week.

3. Dell Inc. (DELL): Personal Computers Industry. Market cap of $32.27B. Takeover/LBO rumor sourced from Seeking Alpha. Net insider purchases over the last six months at 17.23M, which is 1.07% of the company's share float. The stock has gained 27.69% over the last year.

4. American Eagle Outfitters, Inc. (AEO): Apparel Stores Industry. Market cap of $2.74B. Takeover/LBO rumor sourced from Seeking Alpha. Net insider purchases over the last six months at 579.63K, which is 0.33% of the company's share float. The stock has gained 19.63% over the last year.

5. Iridium Communications Inc. (IRDM): Communication Equipment Industry. Market cap of $626.25M. Takeover/LBO rumor sourced from Seeking Alpha. Net insider purchases over the last six months at 85.10K, which is 0.20% of the company's share float. The stock is a short squeeze candidate, with a short float at 20.88% (equivalent to 18.9 days of average volume). The stock has lost 15.6% over the last year.

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

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

Source: 5 Takeover / LBO Targets Snapped Up by Insiders