The major market correction is creating some new stock bargains that insiders are taking advantage of at certain companies. Most often we see insiders cashing in and selling their shares. However, the stocks below have seen recent insider buying. I have provided links for each stock showing the insider buying filed with the SEC. Here are the stocks:
Chimera Investment Corporation (NYSE:CIM)
is trading around $3. Chimera is a real estate investment trust and is based in New York. These shares have traded in a range of $2.96 to $4.36 in the last 52 weeks. The 50-day moving average is $3.38 and the 200-day moving average is $3.69. CIM is estimated to earn about 61 cents per share in 2011. Multiple insiders including directors and the CEO just bought more than $500,000 worth of this stock
. CIM pays a solid dividend of 56 cents per share, which is equivalent to a 16% yield. The book value is stated at $3.45. This stock has dropped with the markets in the past few trading sessions and it looks like insiders are taking advantage of the lower price.
Genworth Financial, Inc. (NYSE:GNW)
has pulled back sharply and is trading at $6.89 today. The relative strength index is about 27, which indicates these shares are oversold. These shares have fallen, from a 52-week high of $16.10 and just today made a new 52-week low of $6.53. The 50-day moving average is $9.69 and the 200-day moving average is $11.94, so these shares are trading well below key support levels. GNW has earnings estimates of about 98 cents per share for 2011, and $1.61 for 2012. GNW warned on earnings and raised concerns over continued mortgage insurance losses. These shares could take a while to move, but are worth considering on further weakness. One officer just bought 2,000 shares
KB Home (NYSE:KBH)
shares are trading at $7.30. KB Home is a leading home builder. The 50-day moving average is $10.14 and the 200-day moving average is $11.97. Book value is $5.76 per share. Earnings estimates indicate a loss for 2011 and small profit of about 10 cents for 2012. KB Home has been losing money recently and continued weakness in the economy will further delay a recovery in profits for this company. One officer just bought 15,000 shares.
MGIC Investment Corp. (NYSE:MTG)
is trading around $3.24. MGIC is a surety and title insurance company and is based in Wisconsin. The 50-day moving average is $5.79 and the 200-day moving average is $8.23. These shares have traded in a range between $3.03 to $11.79 in the last 52 weeks. Earnings estimates for MTG are for a loss in 2011 and profit of 25 cents in 2012. This stock has plunged and recently hit new 52-week lows over concerns that the housing crisis will continue to lead mortgage insurers like MTG into paying claims for the foreseeable future. However, the stock appears to be oversold and insiders have been buying repeatedly
, one insider just bought 50,000 shares.
Accuride Corp. (NYSE:ACW)
is trading around $9.35. Accuride is a manufacturer of commercial vehicle parts. The 50-day moving average is $12.42 and the 200-day moving average is $13.50. These shares have traded in a range between $9.13 to $16.34 in the last 52 weeks. A couple of months ago, the CFO reported buying about $60,000 worth of stock. Other insiders have also been buying substantial amounts of stock in the past few days
Data sourced from Yahoo Finance and Insidercow.com. The information and data is believed to be accurate, but no guarantees or representations are made.
I am long CIM
Disclaimer: Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.