Seeking Alpha
Profile| Send Message|
( followers)  

Insider buying can be a great sign that a stock is a real value or that it is going higher in the near future. Insiders tend to know their companies better than outsiders or analysts, so when they put their own money in share purchases, it can be very meaningful. 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 some low-priced stocks trading around $5 or less with strong insider buying.

RAIT Financial Trust (NYSE:RAS) shares are trading at $3.48. RAIT is a real estate investment trust based in Pennsylvania. These shares have traded in a range between $3.12 to $11.34 in the last 52 weeks. The 50-day moving average is $5.30, and the 200-day moving average is $6.71. The stock trades at a significant discount to the book value, which is currently stated at $24.57. A few insiders have purchased over 75,000 share in the last 5 weeks. You can see the repeated insider buying here.

Sunstone Hotel Investors, Inc. (NYSE:SHO) is trading around $4.99. Sunstone is based in California and invests primarily in upscale hotel properties. These shares have traded in a range between $4.98 to $11.15 in the last 52 weeks. The 50-day moving average is $8.11, and the 200-day moving average is $9.57. The book value is stated at $8.51. Room rates have been rising for hotels, along with occupancy rates, but there are new fears that a recession could change that quickly. Three insiders have bought over 100,000 share in August.

Opko Health Inc., (NYSE:OPK) is trading around $4.02. Opko is a specialty drug and vaccine company based in Florida. These shares have traded in a range between $2.02 to $5.03 in the last 52 weeks. The 50-day moving average is $3.91, and the 200-day moving average is $3.80. OPK is estimated to post a loss in 2011. The CEO has been making regular purchases of stock.

Sun Heathcare (NASDAQ:SUNH) is trading around $3.84. Sun Healthcare is provider of healthcare services and is based in California. These shares have traded in a range between $2.75 to $15.01 in the last 52 weeks. The 50-day moving average is $6.14 and the 200-day moving average is $10.56. A number of insiders including the CEO and CFO have purchased over 50,000 shares in the past few weeks.

Synta Pharmaceuticals, Inc. (NASDAQ:SNTA) is trading around $3.97. Synta is a biotechnology company based in California. These shares have traded in a range between $2.74 to $6.93 in the last 52 weeks. The 50-day moving average is $4.50, and the 200-day moving average is $5.10. One director has purchased over 130,000 share in the past few weeks alone.

Harris & Harris Group, Inc. (NASDAQ:TINY) is trading around $4.12. Harris & Harris is a venture capital firm that focuses on nanotechnology investments. Nanotechnology is likely to provide major investment opportunities in the future and TINY is a diversified way to play it. The 50 day-moving average is $4.87, and the 200-day moving average is $5.02. These shares have traded in a range between $3.70 to $6.30 in the last 52 weeks. The CEO and other insiders have been buying stock regularly.

Regions Financial Corp (NYSE:RF) is trading around $4.12. Regions is a regional bank based in Alabama. These shares have traded in a range between $3.84 to $8.09 in the last 52 weeks. The 50-day moving average is $5.50 and the 200-day moving average is $6.56. The book value is $10.71. RF is estimated to earn about 14 cents per share in 2011 and 60 cents in 2012. A number of insiders have been buying in August, and together they have bought over 100,000 shares recently.

Disclaimer: The data is sourced from Yahoo Finance 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.

Source: 7 Stocks Under $5 With Strong Insider Buying