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Q3 earnings season kicks off next week – do you have a watch list prepared?

To figure out where to start, one helpful guide is the buying trends of company insiders. These are members of upper management and the company’s board, and because of their positions they know their companies very well. If their outlook on the company is strong enough to influence their personal investing, it’s a signal to take a second look.

We ran a screen on stocks reporting their Q3 earnings next week 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 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 (NYSEARCA:SPY) index over the last month.

(Click chart for more detail)



Do you think these companies will report earnings surprises? Use this list as a starting-off point for your own analysis.

List sorted by net insider shares purchased as a percent of share float.

1. Webster Financial Corp. (NYSE:WBS): Operates as the holding company for the Webster Bank that provides various banking and financial products and services in southern New England and eastern New York State. Market cap of $1.28B. Earnings to be reported on 10/14. Net insider shares purchased over the last six months at 2.05M, which is 2.85% of the company's 72.09M share float. The stock is a short squeeze candidate, with a short float at 7.22% (equivalent to 9.34 days of average volume). It's been a rough couple of days for the stock, losing 8.06% over the last week.

2. API Technologies Corp. (NASDAQ:ATNY): Engages in the design, development, and manufacture of systems, subsystems, RF, and secure communications solutions for defense, aerospace, medical, industrial, and commercial applications. Market cap of $197.54M. Earnings to be reported on 10/10. Net insider shares purchased over the last six months at 163.17K, which is 0.68% of the company's 23.89M share float. It's been a rough couple of days for the stock, losing 23.79% over the last week.

3. Lakeland Bancorp Inc. (NASDAQ:LBAI): Operates as the bank holding company of Lakeland Bank, which provides various commercial and consumer banking products and services to small and medium-sized businesses, professionals, and individuals primarily in northern New Jersey. Market cap of $184.88M. Earnings to be reported on 10/10. Net insider shares purchased over the last six months at 35.48K, which is 0.16% of the company's 22.05M share float. The stock is a short squeeze candidate, with a short float at 6.68% (equivalent to 29.61 days of average volume). It's been a rough couple of days for the stock, losing 10.16% over the last week.

4. Winmark Corp. (NASDAQ:WINA): Operates as a franchisor of four retail store concepts that buy, sell, trade, and consign merchandise. Market cap of $223.30M. Earnings to be reported on 10/10. Net insider shares purchased over the last six months at 2.62K, which is 0.12% of the company's 2.24M share float. It's been a rough couple of days for the stock, losing 8.16% over the last week.

5. Citizens & Northern Corp. (NASDAQ:CZNC): Operates as the holding for Citizens & Northern Bank, which provides various banking and mortgage products and services to individual and corporate customers in north central Pennsylvania, and southern New York. Market cap of $171.68M. Earnings to be reported on 10/10. Net insider shares purchased over the last six months at 6.08K, which is 0.05% of the company's 11.88M share float. It's been a rough couple of days for the stock, losing 6.98% over the last week.

*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: 5 Insider Picks Reporting Q3 Earnings Next Week