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Analysts follow the buying trends of company insiders because insiders know more about their companies than anyone else. When a stock sees increased insider buying, it is a sign that executives have confidence in their company’s performance.

We ran a screen on stocks from the healthcare sector for those that are technically oversold, with RSI(14) below 40. We then screened for those seeing significant net insider purchases 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 agree with company insiders on these names? 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. Complete Genomics, Inc. (NASDAQ:GNOM): Develops and commercializes a DNA sequencing platform for human genome sequencing and analysis. Market cap of $255.63M. RSI(14) at 37.87. Net insider shares purchased over the last six months at 1.65M, which is 16.14% of the company's 10.22M share float. The stock is a short squeeze candidate, with a short float at 8.31% (equivalent to 8.29 days of average volume). It's been a rough couple of days for the stock, losing 5.5% over the last week.

2. Genomic Health Inc. (NASDAQ:GHDX):
Focuses on the development and global commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. Market cap of $621.35M. RSI(14) at 33.87. Net insider shares purchased over the last six months at 554.75K, which is 2.07% of the company's 26.75M share float. The stock is a short squeeze candidate, with a short float at 9.09% (equivalent to 18.42 days of average volume). The stock has performed poorly over the last month, losing 13.93%.

3. Skilled Healthcare Group, Inc. (NYSE:SKH):
Operates skilled nursing facilities, assisted living facilities, hospices, home health providers, and a rehabilitation therapy business. Market cap of $171.85M. RSI(14) at 37.90. Net insider shares purchased over the last six months at 246.10K, which is 1.28% of the company's 19.18M share float. The stock has performed poorly over the last month, losing 12.4%.

4. Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH): Focuses on developing and commercializing therapeutics to treat diseases associated with inflammation, including cardiovascular and autoimmune diseases. Market cap of $195.74M. RSI(14) at 38.65. Net insider shares purchased over the last six months at 279.79K, which is 1.08% of the company's 25.95M share float. The stock has performed poorly over the last month, losing 18.78%.

5. Addus HomeCare Corp. (NASDAQ:ADUS):
Provides a range of social and medical services to individuals in the home. Market cap of $50.08M. RSI(14) at 37.53. Net insider shares purchased over the last six months at 34.50K, which is 0.60% of the company's 5.76M share float. It's been a rough couple of days for the stock, losing 5.1% over the last week.

6. Cumberland Pharmaceuticals, Inc. (NASDAQ:CPIX): Engages in the acquisition, development, and commercialization of branded prescription products for the hospital acute care and gastroenterology markets. Market cap of $109.24M. RSI(14) at 33.64. Net insider shares purchased over the last six months at 50.0K, which is 0.37% of the company's 13.51M share float. The stock is a short squeeze candidate, with a short float at 11.03% (equivalent to 17.63 days of average volume). It's been a rough couple of days for the stock, losing 7.11% over the last week.

7. TranS1, Inc. (TSON):
Focuses on the design, development, and marketing of products that implement its proprietary surgical approach to treat degenerative disc disease and instability affecting the lower lumbar region of the spine. Market cap of $77.52M. RSI(14) at 35.73. Net insider shares purchased over the last six months at 12.38K, which is 0.15% of the company's 8.24M share float. It's been a rough couple of days for the stock, losing 7.27% over the last week.

8. China Medical Technologies Inc. (CMED): Develops, manufactures, and markets immunodiagnostic and molecular diagnostic products. Market cap of $165.22M. RSI(14) at 38.73. Net insider shares purchased over the last six months at 16.70K, which is 0.10% of the company's 16.44M share float. The stock is a short squeeze candidate, with a short float at 16.69% (equivalent to 17.96 days of average volume). The stock has performed poorly over the last month, losing 13.07%.

*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.

Source: 8 Oversold Healthcare Stocks Being Bought Up By Insiders