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Analysts follow the buying trends of company insiders because, after all, they know more about their companies than anyone else. If insiders buy more company shares, it’s a signal to take a second look.

We ran a screen on small-cap stocks that are technically oversold, with RSI(14) below 40. 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.

(Click chart for more detail)


Do you think insiders are calling it right on their companies? 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. Red Lion Hotels Corporation (NYSE:RLH): Lodging Industry. Market cap of $142.69M. RSI(14) at 28.95. Net insider purchases over the last six months at 239.44K, which is 2.04% of the company's 11.74M share float. The stock is currently stuck in a downtrend, trading 5.56% below its SMA20, 5.06% below its SMA50, and 7.02% below its SMA200. The stock has gained 0.27% over the last year.

2. Deer Consumer Products, Inc. (OTC:DEER):
Home Furnishings & Fixtures Industry. Market cap of $212.96M. RSI(14) at 33.84. Net insider purchases over the last six months at 350.00K, which is 1.98% of the company's 17.67M share float. The stock is a short squeeze candidate, with a short float at 12.83% (equivalent to 7.79 days of average volume). It's been a rough couple of days for the stock, losing 11.58% over the last week.

3. Isramco Inc. (NASDAQ:ISRL): Independent Oil & Gas Industry. Market cap of $166.44M. RSI(14) at 39.08. Net insider purchases over the last six months at 15.17K, which is 1.53% of the company's 989.67K share float. It's been a rough couple of days for the stock, losing 5.93% over the last week.

4. AtriCure, Inc. (NASDAQ:ATRC): Medical Instruments & Supplies Industry. Market cap of $192.27M. RSI(14) at 32.72. Net insider purchases over the last six months at 129.10K, which is 1.38% of the company's 9.33M share float. It's been a rough couple of days for the stock, losing 12.39% over the last week.

5. Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH): Drug Manufacturers Industry. Market cap of $262.72M. RSI(14) at 32.16. Net insider purchases over the last six months at 279.79K, which is 1.33% of the company's 20.97M share float. After a solid performance over the last year, ANTH has pulled back during recent sessions. The stock is 13.03% below its SMA20 and 14.18% below its SMA50, but remains 10.57% above its SMA200. The stock has gained 39.37% over the last year.

6. Skilled Healthcare Group, Inc. (NYSE:SKH): Long-Term Care Facilities Industry. Market cap of $192.48M. RSI(14) at 19.89. Net insider purchases over the last six months at 246.10K, which is 1.27% of the company's 19.41M share float. The stock is currently stuck in a downtrend, trading 43.47% below its SMA20, 47.17% below its SMA50, and 49.12% below its SMA200. It's been a rough couple of days for the stock, losing 41.5% over the last week.

7. Corcept Therapeutics Inc. (NASDAQ:CORT): Biotechnology Industry. Market cap of $292.22M. RSI(14) at 22.62. Net insider purchases over the last six months at 556.90K, which is 1.10% of the company's 50.46M share float. The stock is currently stuck in a downtrend, trading 10.55% below its SMA20, 19.11% below its SMA50, and 16.13% below its SMA200. It's been a rough couple of days for the stock, losing 8.66% over the last week.

8. CAMAC Energy Inc. (NYSEMKT:CAK): Independent Oil & Gas Industry. Market cap of $182.16M. RSI(14) at 38.34. Net insider purchases over the last six months at 568.60K, which is 1.0% of the company's 57.09M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.7). The stock is a short squeeze candidate, with a short float at 8.35% (equivalent to 11.5 days of average volume). The stock has performed poorly over the last month, losing 11.28%.

*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: 8 Oversold Small Caps Insiders Are Buying