5 Oversold, Undervalued Stocks Insiders Are Snapping Up

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 |  Includes: AIG, AOL, IRDM, LUK, RFP
by: Kapitall

Analysts follow the buying trends of company insiders because, after all, they have more information about their companies than anyone else.

We ran a screen on technically oversold stocks (with RSI(14) below 40) that appear undervalued to earnings growth (with PEG < 1). We screened these companies for those seeing 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.

(Click chart for more detail)



Do you think insiders are calling it right? 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. AbitibiBowater Inc. Common Stoc (ABH): Paper & Paper Products Industry. Market cap of $1.60B. RSI(14) at 39.35. PEG at 0.11. Net insider purchases over the last six months at 3.61M, which is 4.39% of the company's 82.28M share float. The stock is a short squeeze candidate, with a short float at 10.39% (equivalent to 10.39 days of average volume). The stock has performed poorly over the last month, losing 15.88%.

2. American International Group, Inc. (NYSE:AIG): Property & Casualty Insurance Industry. Market cap of $43.90B. RSI(14) at 37.68. PEG at 0.30. Net insider purchases over the last six months at 6.98M, which is 3.06% of the company's 228.46M share float. It's been a rough couple of days for the stock, losing 7.85% over the last week.

3. AOL, Inc. (NYSE:AOL): Internet Information Providers Industry. Market cap of $1.26B. RSI(14) at 29.36. PEG at 0.93. Net insider purchases over the last six months at 490.0K, which is 0.47% of the company's 105.24M share float. The stock is a short squeeze candidate, with a short float at 19.62% (equivalent to 9.44 days of average volume). It's been a rough couple of days for the stock, losing 26.88% over the last week.

4. Jefferies Group Inc. (JEF): Investment Brokerage Industry. Market cap of $2.75B. RSI(14) at 37.92. PEG at 0.48. Net insider purchases over the last six months at 766.0K, which is 0.37% of the company's 207.35M share float. It's been a rough couple of days for the stock, losing 6.92% over the last week.

5. Iridium Communications Inc. (NASDAQ:IRDM): Communication Equipment Industry. Market cap of $530.04M. RSI(14) at 38.39. PEG at 0.75. Net insider purchases over the last six months at 85.10K, which is 0.20% of the company's 42.13M share float. The stock is a short squeeze candidate, with a short float at 20.58% (equivalent to 17.88 days of average volume). It's been a rough couple of days for the stock, losing 8.35% over the last week.

*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.