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

We ran a screen on stocks trading under $5 for those that appear undervalued to earnings growth, with PEG below 1. We screened these stocks 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 top six 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 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. ChinaCast Education Corporation (OTCPK:CAST): Education & Training Services Industry. Market cap of $240.05M. PEG at 0.82. Price at $4.69. Net insider purchases over the last six months at 317.80K, which is 1.0% of the company's 31.76M share float. Might be undervalued at current levels, with a PEG ratio at 0.82, and P/FCF ratio at 7.11. The stock is a short squeeze candidate, with a short float at 19.39% (equivalent to 19.81 days of average volume). The stock has had a couple of great days, gaining 14.49% over the last week.

2. The McClatchy Company (NYSE:MNI): Publishing Industry. Market cap of $146.54M. PEG at 0.96. Price at $1.70. Net insider purchases over the last six months at 318.80K, which is 0.66% of the company's 48.48M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.19). The stock is a short squeeze candidate, with a short float at 47.45% (equivalent to 31.89 days of average volume).

3. Harvard Bioscience Inc. (NASDAQ:HBIO): Medical Instruments & Supplies Industry. Market cap of $122.22M. PEG at 0.28. Price at $4.26. Net insider purchases over the last six months at 100.0K, which is 0.49% of the company's 20.52M share float. The stock is currently stuck in a downtrend, trading 9.81% below its SMA20, 17.8% below its SMA50, and 11.1% below its SMA200. The stock has performed poorly over the last month, losing 23.94%.

4. RAIT Financial Trust (NYSE:RAS): REIT Industry. Market cap of $150.26M. PEG at 0.23. Price at $3.70. Net insider purchases over the last six months at 101.69K, which is 0.27% of the company's 37.38M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.97). It's been a rough couple of days for the stock, losing 13.3% over the last week.

5. Entercom Communications Corp. (NYSE:ETM): Radio Industry. Market cap of $216.55M. PEG at 0.36. Price at $4.91. Net insider purchases over the last six months at 37.20K, which is 0.20% of the company's 18.15M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.65). The stock is a short squeeze candidate, with a short float at 14.27% (equivalent to 15.6 days of average volume).

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

Source: 5 Stocks Under $5 Being Snapped Up By Insiders