A major market correction is creating some new stock bargains that insiders are taking advantage of at several companies. The amount of insider buying has surged in the last few days, and a new article from CNNmoney states:
Corporate insiders are rushing to buy shares in their companies, suggesting that they think the recent sell-off in their stocks is overdone.
There's a lot of buying and it's widespread across all market cap groups and all sectors," said Ben Silverman, director of research at InsiderScore.com.
When you see insider buying at depressed prices, it often means the shares are oversold and offer great long term value. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the stocks:
Aastrom Biosciences, Inc. (ASTM) is trading around $2.23. Aastrom is a biotechnology company, based in Michigan. The 50 day moving average is $2.65 and the 200 day moving average is $2.64. These shares have traded in a range between $1.39 to $4.45 in the last 52 weeks. The CEO recently bought 30,000 shares. You can see the repeated insider buying here.
Whirlpool Corp. (NYSE:WHR
) shares are trading at $61.15. Whirlpool is a leading maker of appliances. The 50 day moving average is about $73.98 and the 200 day moving average is about $80.58. These shares have traded in a 52 week range between $55.91 and $92.28. Earnings estimates for WHR are about $11.90 per share in 2011 and $8.98 for 2012. These share have recently dropped below the 50 and 200 day moving averages when they announced that earnings for the 2nd quarter would be a loss of $2.10 per share due to a legal settlement. WHR pays a dividend of $2 per share which is equivalent to a yield of 3.3%. An officer recently bought 3,000 shares. You can see the insider buying here: finance.yahoo.com/q/it
) shares are trading at $7.34. Supervalu is a leading grocery store company and is based in Minnesota. The 50 day moving average is about $8.70 and the 200 day moving average is about $9.03. Earnings estimates for SVU are $1.25 per share in 2011 and $1.29 for 2012 so the PE ratio is about 5 on these shares. Supervalu pays a dividend of about 35 cents per share which is equivalent to a yield of 4.9%. Two officers recently bought over $100,000 worth of stock. You can see the insider buying here: www.insidercow.com/history/company.jsp;jsessionid=DAC21163A5332A9FF8A903DFEBBADA9C
Keryx Biopharmaceuticals, Inc. (NASDAQ:KERX
) is trading around $4.57. Keryx is a biotechnology company, based in New York. These shares have traded in a 52 week range between $3.03 to $5.91. The 50 day moving average is $4.92 and the 200 day moving average is $4.71. Earnings estimates for KERX are for a loss of 35 cents per share for 2011 and loss of 41 cents for 2012. This company has two candidates "Perifosine" for multiple myeloma and colorectal cancer and "Zerenex" which targets hyperphosphatemia in patients with end-stage renal disease, both of which are currently in phase 3 trials. A few directors recently bought about 37,500 shares. You can see the insider buying here: finance.yahoo.com/q/it
Opko Health Inc., (NYSEMKT:OPK
) is trading around $3.71. Opko is a specialty drug and vaccine company, based in Florida. This company has some interesting products like retina tracking and others relating to ophthalmology which could have significant potential. These shares have traded in a range between $1.80 to $5.03 in the last 52 weeks. The 50 day moving average is $4.05 and the 200 day moving average is $3.07. OPK is estimated to post a loss in 2011. The CEO recently bought over $100,000 worth of stock. You can see the repeated insider buying here: www.insidercow.com/history/company.jsp
Leap Wireless (LEAP
) shares are trading at $7.47. Leap is a wireless communications provider. The 50 day moving average is $14.32 and the 200 day moving average is $13.82. Earnings estimates for LEAP are expected to be negative for 2011. These shares are trading for not much more than book value which is stated at $11.62. A director recently bought over $20 million worth of LEAP shares. You can see the repeated insider buying here: www.prontosec.com/secdata/companyReportsSearchPage.htm
The data is sourced from Yahoo Finance, Prontosec.com and Insidercow.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.