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Comparing insider buying trends to stock performance can yield some interesting results. When insider buying coincides with a prolonged stock dip, it can mean one of two things – either insiders are wrong about their companies and they’ll soon trade with the broader market and sell, or insiders have greater confidence than the market for good reason.

We ran a screen on stocks that have highly underperformed over the last quarter, with worse than -40% change in price. We screened these stocks for those that have seen 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.


(Click to enlarge)

Do you think these insiders know what they’re doing, or will they soon change their minds? Use this list as a starting-off point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Zogenix, Inc. (NASDAQ:ZGNX): Engages in the development and commercialization of products for the treatment of central nervous system disorders and pain. Market cap of $67.02M. The stock has lost 47.75% over the past quarter. Net insider shares purchased over the last six months at 7.16M, which is 18.53% of the company's 38.61M share float. The stock is currently stuck in a downtrend, trading 29.01% below its SMA20, 47.92% below its SMA50, and 56.07% below its SMA200. The stock has performed poorly over the last month, losing 41.02%.

2. Complete Genomics, Inc. (NASDAQ:GNOM): Develops and commercializes a DNA sequencing platform for human genome sequencing and analysis. Market cap of $211.32M. The stock has lost 57.96% over the past quarter. Net insider shares purchased over the last six months at 1.65M, which is 16.13% of the company's 10.23M share float. The stock is a short squeeze candidate, with a short float at 8.31% (equivalent to 8.04 days of average volume). The stock is currently stuck in a downtrend, trading 22.23% below its SMA20, 33.94% below its SMA50, and 39.91% below its SMA200. It's been a rough couple of days for the stock, losing 10.38% over the last week.

3. US Concrete Inc. (NASDAQ:USCR): Engages in the production and sale of ready-mixed concrete, precast concrete products, and concrete-related products for use in commercial, residential, and public works construction projects in the United States. Market cap of $51.56M. The stock has lost 46.52% over the past quarter. Net insider shares purchased over the last six months at 149.41K, which is 1.90% of the company's 7.85M share float. The stock is currently stuck in a downtrend, trading 16.78% below its SMA20, 32.58% below its SMA50, and 48.85% below its SMA200. It's been a rough couple of days for the stock, losing 9.28% over the last week.

4. Central European Media Enterprises Ltd. (NASDAQ:CETV): Operates as a vertically integrated media company operating broadcast, content, and new media businesses in central and eastern European countries. Market cap of $531.22M. The stock has lost 56.83% over the past quarter. Net insider shares purchased over the last six months at 433.36K, which is 1.59% of the company's 27.21M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.23). The stock is a short squeeze candidate, with a short float at 12.11% (equivalent to 7.52 days of average volume). It's been a rough couple of days for the stock, losing 14.42% over the last week.

5. Lincoln Educational Services Corporation (NASDAQ:LINC): Provides career-oriented post-secondary education services in the United States. Market cap of $181.41M. The stock has lost 49.97% over the past quarter. Net insider shares purchased over the last six months at 291.38K, which is 1.37% of the company's 21.23M share float. Might be undervalued at current levels, with a PEG ratio at 0.83, and P/FCF ratio at 3.29. The stock is currently stuck in a downtrend, trading 10.32% below its SMA20, 32.84% below its SMA50, and 44.8% below its SMA200. It's been a rough couple of days for the stock, losing 9.68% over the last week.

6. 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 $129.27M. The stock has lost 63.94% over the past quarter. 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 is currently stuck in a downtrend, trading 26.08% below its SMA20, 40.43% below its SMA50, and 66.87% below its SMA200. It's been a rough couple of days for the stock, losing 20.93% over the last week.

7. Primo Water Corporation (NASDAQ:PRMW): Provides multi-gallon purified bottled water, self-serve filtered drinking water, and water dispensers in the United States and Canada. Market cap of $146.05M. The stock has lost 56.22% over the past quarter. Net insider shares purchased over the last six months at 190.0K, which is 0.98% of the company's 19.32M share float. The stock has had a good month, gaining 24.95%.

8. The McClatchy Company (NYSE:MNI): Operates as a newspaper publisher in the United States. Market cap of $104.80M. The stock has lost 52.69% over the past quarter. Net insider shares purchased 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 = 3.23). The stock is a short squeeze candidate, with a short float at 44.17% (equivalent to 40.53 days of average volume). It's been a rough couple of days for the stock, losing 12.14% over the last week.

9. Spartech Corp. (NYSE:SEH): Operates as an intermediary producer of plastic products, custom extruded sheet and rollstock products, and packaging technologies in the United States. Market cap of $101.43M. The stock has lost 46.07% over the past quarter. Net insider shares purchased over the last six months at 150.34K, which is 0.51% of the company's 29.46M share float. The stock is currently stuck in a downtrend, trading 19.68% below its SMA20, 30.62% below its SMA50, and 51.8% below its SMA200. It's been a rough couple of days for the stock, losing 19.56% over the last week.

10. Cenveo Inc. (NYSE:CVO): Operates as a diversified printing company in North America. Market cap of $202.29M. The stock has lost 47.55% over the past quarter. Net insider shares purchased over the last six months at 125.37K, which is 0.24% of the company's 52.20M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.25). The stock is a short squeeze candidate, with a short float at 10.57% (equivalent to 14.34 days of average volume). It's been a rough couple of days for the stock, losing 7.76% over the last week.

11. Golden Minerals Company (NYSEMKT:AUMN): Engages in the exploration and development of precious metals and other mineral properties in Mexico and South America. Market cap of $259.56M. The stock has lost 56.53% over the past quarter. Net insider shares purchased over the last six months at 24.50K, which is 0.20% of the company's 12.01M share float. The stock is currently stuck in a downtrend, trading 33.37% below its SMA20, 38.64% below its SMA50, and 56.78% below its SMA200. It's been a rough couple of days for the stock, losing 27.22% over the last week.

12. AMN Healthcare Services Inc. (NYSE:AHS): Provides healthcare staffing and clinical workforce management solutions in the United States. Market cap of $167.98M. The stock has lost 49.94% over the past quarter. Net insider shares purchased over the last six months at 65.50K, which is 0.17% of the company's 38.62M share float. The stock is a short squeeze candidate, with a short float at 6.77% (equivalent to 11.62 days of average volume). The stock is currently stuck in a downtrend, trading 14.28% below its SMA20, 30.86% below its SMA50, and 41.83% below its SMA200. It's been a rough couple of days for the stock, losing 9.76% over the last week.

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

Source: 12 Highly Underperforming Stocks Being Snapped Up By Insiders