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For a look at a company’s outlook, one great source is the stock buying trends of company insiders. Members of the board and upper management know more about their companies than anyone else – if they’re buying company stock, it is a big vote of confidence.

We ran a screen on stocks currently trading under $5 for those that have seen significant net insider buying over the last six months, indicating that their insiders believe in the company’s outlook.

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 are calling it right? 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 $148.15M. Price at $4.48 as of market close on 11/14. 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 currently stuck in a downtrend, trading 12.87% below its SMA20, 26.63% below its SMA50, and 56.25% below its SMA200. It's been a rough couple of days for the stock, losing 11.29% over the last week.

2. ZIOPHARM Oncology, Inc. (NASDAQ:ZIOP): Focuses on the development and commercialization of in-licensed cancer drugs in North America. Market cap of $327.19M. Price at $4.78 as of market close on 11/14. Net insider shares purchased over the last six months at 4.34M, which is 7.56% of the company's 57.36M share float. The stock is a short squeeze candidate, with a short float at 13.39% (equivalent to 15.25 days of average volume). The stock has had a couple of great days, gaining 5.75% over the last week.

3. ATS Corporation (NYSEMKT:ATSC): Provides software and systems development, systems integration, information sharing and assurance, information technology (NYSE:IT) infrastructure and outsourcing, and IT and business consulting services primarily to government agencies in the United States. Market cap of $68.53M. Price at $2.99 as of market close on 11/14. Net insider shares purchased over the last six months at 460.17K, which is 7.43% of the company's 6.19M share float. It's been a rough couple of days for the stock, losing 8% over the last week.

4. Repros Therapeutics Inc. (NASDAQ:RPRX): Biotechnology Industry. Market cap of $58.77M. Price at $4.77 as of market close on 11/14. Net insider shares purchased over the last six months at 426.70K, which is 5.38% of the company's 7.93M share float. The stock is a short squeeze candidate, with a short float at 5.94% (equivalent to 14.2 days of average volume). The stock has had a couple of great days, gaining 8.41% over the last week.

5. Synta Pharmaceuticals Corp. (NASDAQ:SNTA): Focuses on the discovery, development, and commercialization of small molecule drug candidates for treating severe medical conditions, including cancer and chronic inflammatory diseases. Market cap of $162.36M. Price at $3.28 as of market close on 11/14. Net insider shares purchased over the last six months at 1.55M, which is 5.17% of the company's 29.93M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.47). The stock is a short squeeze candidate, with a short float at 11.64% (equivalent to 27.36 days of average volume). It's been a rough couple of days for the stock, losing 7.61% over the last week.

6. MannKind Corp. (NASDAQ:MNKD): Focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer. Market cap of $391.39M. Price at $2.98 as of market close on 11/14. Net insider shares purchased over the last six months at 3.48M, which is 4.69% of the company's 74.22M share float. The stock is a short squeeze candidate, with a short float at 29.82% (equivalent to 25.82 days of average volume). The stock has performed poorly over the last month, losing 11.04%.

7. American Superconductor Corporation (NASDAQ:AMSC): Provides wind turbine designs and electrical control systems primarily in North America, Europe, and the Asia-Pacific. Market cap of $208.77M. Price at $4.06 as of market close on 11/14. Net insider shares purchased over the last six months at 1.51M, which is 3.94% of the company's 38.30M share float. The stock is a short squeeze candidate, with a short float at 29.94% (equivalent to 8.49 days of average volume). The stock has lost 88.22% over the last year.

8. Star Scientific, Inc. (CIGX): Engages in the development, implementation, and licensing of tobacco curing technology that prevents the formation of carcinogenic toxins present in tobacco and tobacco smoke, primarily the tobacco-specific nitrosamines (TSNA). Market cap of $351.16M. Price at $2.60 as of market close on 11/14. Net insider shares purchased over the last six months at 4.04M, which is 3.91% of the company's 103.48M share float. The stock is a short squeeze candidate, with a short float at 15.06% (equivalent to 8.77 days of average volume). The stock has gained 51.16% over the last year.

9. US Gold Corporation (NYSE:UXG): Engages in the exploration for, development of, production, and sale of gold, silver, and other precious metals. Market cap of $644.14M. Price at $4.72 as of market close on 11/14. Net insider shares purchased over the last six months at 3.07M, which is 2.85% of the company's 107.76M share float. The stock has lost 15.56% over the last year.

10. Quepasa Corp. (QPSA): Operates as an online social community for young Hispanics. Market cap of $63.04M. Price at $4.68 as of market close on 11/14. Net insider shares purchased over the last six months at 306.30K, which is 2.23% of the company's 13.76M share float. The stock is a short squeeze candidate, with a short float at 19.73% (equivalent to 9.06 days of average volume). The stock has had a good month, gaining 30%.

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

Source: 10 Stocks Under $5 Being Snapped Up By Insiders