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Company insiders, such as members of the board and upper management, know their companies better than anyone else, so when they personally buy company stock, it is a strong signal of confidence. Luckily, company insiders report their buying trends, so we can search for companies with strong net buying from their insiders.

We ran a screen on the retail industry for stocks seeing the most net buying from their company insiders 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 index over the last month. To access a complete analysis of this list's recent performance, click here.

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Do you think these insiders are calling it right on their companies? Use this list as a starting point for your own analysis.

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

1. Pacific Sunwear of California Inc. (PSUN): Operates as a retailer rooted in the action sports, fashion and music influences of the California lifestyle. Market cap of $92.13M. Net insider shares purchased over the last six months at 10.33M, which is 28.80% of the company's 35.86M 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 14.12% (equivalent to 7.75 days of average volume). The stock has had a couple of great days, gaining 6.15% over the last week.

2. Saks Incorporated (SKS): Operates fashion retail stores in the United States. Market cap of $1.66B. Net insider shares purchased over the last six months at 4.70M, which is 4.54% of the company's 103.37M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.54). The stock is a short squeeze candidate, with a short float at 31.17% (equivalent to 9.66 days of average volume). The stock has lost 7.08% over the last year.

3. Carter's, Inc. (CRI): Designs, sources and markets branded children's wear. Market cap of $2.20B. Net insider shares purchased over the last six months at 1.76M, which is 3.57% of the company's 49.35M share float. The stock is a short squeeze candidate, with a short float at 8.84% (equivalent to 6.11 days of average volume). The stock has gained 30.01% over the last year.

4. Star Gas Partners, L.P. (SGU): Operates as a home heating oil distributor and services provider in the United States. Market cap of $333.91M. Net insider shares purchased over the last six months at 1.20M, which is 2.02% of the company's 59.43M share float. Offers a good dividend, and appears to have good liquidity to back it up - dividend yield at 6.29%, current ratio at 1.88, and quick ratio at 1.5. The stock has gained 2.71% over the last year.

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

Source: 4 Insider Stock Picks From The Retail Industry