A major market correction has pushed many stocks to 52 week lows, and many insiders are taking advantage of this opportunity. The amount of insider buying has surged in the last couple of weeks. When you see insider buying at depressed prices, it often means the shares are oversold and offer great long term value.
I have provided links for each stock which verifies the insider buying filed with the SEC below:
American Axle (NYSE:AXL) shares are trading at $9.23. AXL is a leading manufacturer of automotive components. The 50-day moving average is about $8.55 and the 200-day moving average is about $11. Earnings estimates for AXL are $2.01 per share in 2011, and $2.10 for 2012. The PE ratio is about 5. This stock dropped to about $7 per share but it has rebounded sharply. If it trades down to around $7 again, that would be a great buying opportunity. Insiders have been repeatedly buying shares and a director recently bought 5,000 shares. You can see the repeated insider buying here.
Best Buy (NYSE:BBY) shares are trading at $27.31. Best Buy is a leading retailer of electronics and is based in Minnesota. The 50-day moving average is $24.97 and the 200-day moving average is $28.80. Earnings estimates for BBY are about $3.41 per share in 2011, and $3.60 for 2012 so the PE ratio is only about 8. The book value is stated at $15.23. Best Buy pays a dividend of 64 cents per share which is equivalent to a yield of 2.4%. There has been repeated insider buying and most recently it was a director buying about 300 shares for a transaction value of about $9,400. You can see the insider buying here.
Supervalu (NYSE:SVU) shares are trading at $7.72. Supervalu is a leading grocery store company and is based in Minnesota. The 50-day moving average is about $7.55 and the 200-day moving average is about $8.44. Earnings estimates for SVU are $1.25 per share in 2011, and $1.26 for 2012, so the PE ratio is about 5 on these shares. Supervalu pays a dividend of about 35 cents per share which is equivalent to a yield of 4.5%. A director recently bought 7,000 shares and other insiders have been buying as well. You can see the insider buying here.
Synovus Financial Corp. (NYSE:SNV) shares are trading at $1.44. Synovus is a regional bank located in Georgia. The 50-day moving average is about $1.30 and the 200-day moving average is about $2.02. Earnings estimates are a loss of 18 cents for 2011 and a profit of 14 cents for 2012. This gives SNV shares a PE ratio of about 10 times forward earnings. The dividend is 4 cents per share per year which is a yield of about 2.8%. SNV has been considered a takeover target for a major bank looking to expand. This stock is volatile and it recently trade around $1 per share, so I would wait for dips to buy. You can see the insider buying here.
Compass Diversified Holdings (NYSE:CODI) shares are trading at $13.18. CODI makes investments in other companies and is based in Connecticut. These shares have traded in a 52 week range between $11.21 to $18.58. The 50-day moving average is $12.61 and the 200-day moving average is $14.28. Earnings estimates for CODI are at $1.67 per share for 2011, and $1.53 for 2012. This company pays a significant dividend of $1.44 per share which is equivalent to a 10.4% dividend yield. CODI has investments in a number of companies that show promise in terms of growth and investment gains. Multiple insider have been buying this stock. You can see the insider buying here.
Accuride Corp. (NYSE:ACW) is trading around $6.58. Accuride is a manufacturer of commercial vehicle parts. The 50-day moving average is $6.77 and the 200-day moving average is $11.36. These shares have traded in a range between $4.35 to $16.34 in the last 52 weeks. After the company announced weak results, this stock dropped about 50% and recently hit new 52 week lows. I would wait to see what next quarter looks like or for another drop before buying. Multiple insiders have been buying substantial amounts of stock, over 30,000 shares in the past few weeks. You can see the repeated insider buying here.
Disclaimer: The data is sourced from Yahoo Finance and Insidercow.com. 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.