With the market declines we have been seeing for the past several weeks, many stocks are trading well off their recent highs. It's promising to see insiders taking advantage of this recent drop by purchasing shares in some of the names below. 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. I have provided links for each stoc,k which verifies the insider buying filed with the SEC below. Here are the stocks:
Corning Incorporated (GLW) shares are trading at $13.96. GLW makes a variety of products ranging from touch-screen glass to fiber optics. The shares have traded in a range between $11.51 to $23.43 in the past 52 weeks. The 50-day moving average is $13.64 and the 200-day moving average is $17.89. Earnings estimates for GLW are about $1.83 per share in 2011, so the PE ratio is around 7 on these shares. GLW pays a dividend of 30 cents per year, which is equivalent to a 2.1% yield. The consumer demand for televisions appears to be weakening, and that outlook has hurt GLW shares. However, this company has a lot going for it, and demand for touch screen glass used in iPads and other mobile devices should offset at least some weakness in televisions. A couple of directors recently bought shares with a combined value of about $500,000.
Procter & Gamble (PG) is trading around $62.86. Procter & Gamble is a leading maker of consumer goods and personal products. This company owns many well-known brand names, such as Braun, Fusion, Gillette, Always, Crest, Dawn, Downy, Duracell, Gain, Tide, and more. These shares have traded in a range between $57.56 to $67.72 in the last 52 weeks. The 50-day moving average is $63.14, and the 200-day moving average is $62.76. PG pays a dividend of $2.10 per year, which is equivalent to a 3.3% yield. PG is estimated to earn about $4.19 per share in 2011, and $4.58 in 2012. This company offers products that are used every day, even in a bad economy, so this stock is a relatively safe place for investors. The CEO recently reported buying 6,299 shares.
Sycamore Networks (SCMR) shares are trading at $19.25. Sycamore makes networking equipment. These shares have traded in a range between $15.60 to $34.31 in the past 52 weeks. The 50-day moving average is $17.94 and the 200-day moving average is $20.82. Earnings estimates for SCMR are for a loss of 17 cents per share in 2011 and a profit of 13 cents for 2012. This stock looks overvalued to me when considering the PE ratio. It is also in a downtrend and is now close to a 52-week low. I would sell this stock on any rallies; however, a director recently bought 7,450 shares.
Red Lion Hotels (RLH) is trading around $7.07. Red Lion operates hotels and is based in Washington. These shares have traded in a range between $6.13 to $9.29 in the last 52 weeks. The 50-day moving average is $6.82 and the 200-day moving average is $7.62. RLH is estimated to lose about 26 cents per share in 2011. This stock could make sense if you believe in an economic turnaround or that Red Lion could be a takeover target. The Columbia Pacific Opportunity Fund has been consistently buying shares for the past few months.
Ligand Pharmaceuticals, Inc. (LGND) is trading around $15.46. Ligand is a biotechnology company based in California. These shares have traded in a range between $8.14 to $16.24 in the last 52 weeks. The 50-day moving average is $14.30 and the 200-day moving average is $11.54. LGND is estimated to earn about 50 cents per share in 2011. Ligand stock has been very strong in a weak market and looks like a good buy, especially on any dips. One director recently reported buying over 10,000 shares, and other insider buys have been made as well.
The data is sourced from Yahoo Finance and stockcharts.com.
Disclaimer: 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.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.