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Analysts speculate about potential takeover/leveraged buyout targets because when a firm announces that they are being taken over or acquired, the target’s stock often jumps in price to reflect the takeover premium paid by the acquirer.

We compiled a universe of rumored potential takeover/LBO targets from various sources including Minyanville and CNBC. 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 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.


(Click to enlarge)

Do you think these companies are likely to be taken over? Use this list as a starting-off point for your own analysis.

To access the complete list of takeover targets, click here. List sorted by net insider purchases as a percent of share float.

1. Saks Incorporated (SKS): Operates fashion retail stores in the United States. Market cap of $1.55B. Takeover/LBO rumor sourced from Seeking Alpha. Net insider shares purchased over the last six months at 4.70M, which is 4.43% of the company's 106.00M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.62). The stock is a short squeeze candidate, with a short float at 26.8% (equivalent to 9.75 days of average volume). The stock has had a couple of great days, gaining 5.09% over the last week.

2. Seattle Genetics Inc. (SGEN): Focuses on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer and autoimmune diseases in the United States. Market cap of $1.93B. Takeover/LBO rumor sourced from Minyanville. Net insider shares purchased over the last six months at 1.48M, which is 1.30% of the company's 113.17M share float. The stock is a short squeeze candidate, with a short float at 21.81% (equivalent to 10.83 days of average volume). The stock has had a couple of great days, gaining 7.81% over the last week.

3. Dell Inc. (DELL): Provides integrated technology solutions in the information technology (IT) industry worldwide. Market cap of $26.82B. Takeover/LBO rumor sourced from Seeking Alpha. Net insider shares purchased over the last six months at 17.23M, which is 1.11% of the company's 1.55B share float. Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 5.72. The stock has gained 18.93% over the last year.

4. American Eagle Outfitters, Inc. (AEO): Operates as an apparel and accessories retailer in the United States and Canada. Market cap of $2.12B. Takeover/LBO rumor sourced from Seeking Alpha. Net insider shares purchased over the last six months at 579.63K, which is 0.33% of the company's 177.02M share float. The stock has had a couple of great days, gaining 7.18% over the last week. The stock has performed poorly over the last month, losing 15.7%.

5. Iridium Communications Inc. (IRDM): Provides mobile voice and data communications services through satellites to businesses, the U. Market cap of $544.68M. Takeover/LBO rumor sourced from Seeking Alpha. Net insider shares purchased over the last six months at 85.10K, which is 0.20% of the company's 42.44M share float. The stock is a short squeeze candidate, with a short float at 20.89% (equivalent to 19.06 days of average volume). The stock has performed poorly over the last month, losing 11.95%.

6. Leap Wireless International Inc. (LEAP): Provides digital wireless services under the “Cricket' brand name in the United States. Market cap of $689.41M. Takeover/LBO rumor sourced from CNBC. Net insider shares purchased over the last six months at 40.0K, which is 0.07% of the company's 53.87M share float. The stock has performed poorly over the last month, losing 12.75%.

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

Source: 6 Takeover/LBO Targets Being Bought Up By Insiders