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Analysts follow the insider buying trends of companies because insiders (such as board members or upper management) know their companies better than anyone else. If they personally buy their company’s stock, it’s a big vote of confidence.

We ran a screen on technically oversold stocks, with RSI(14) readings below 40. We screened these stocks for those with the greatest 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 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.

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Do you think these stocks are poised for a comeback? Use this list as a starting point for your own analysis.

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

1. Saks Incorporated (SKS): Operates fashion retail stores in the United States. Market cap of $1.46B. RSI(14) at 38.26. 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 = 2.55). The stock is a short squeeze candidate, with a short float at 31.17% (equivalent to 9.72 days of average volume). It has been a rough couple of days for the stock, losing 10.12% over the last week.

2. DGSE Companies Inc. (DGSE): Buys and sells jewelry, bullion products and rare coins to the wholesale and retail customers in the United States. Market cap of $72.05M. RSI(14) at 30.34. Net insider shares purchased over the last six months at 42.90K, which is 4.21% of the company's 1.02M share float. It has been a rough couple of days for the stock, losing 10.06% over the last week.

3. GeoEye, Inc. (GEOY): Provides earth imagery and imagery information products as well as image processing services to the United States and foreign government defense and intelligence organizations, domestic federal and foreign civil agencies, and commercial customers. Market cap of $504.60M. RSI(14) at 30.98. Net insider shares purchased over the last six months at 810.0K, which is 4.07% of the company's 19.92M share float. The stock is a short squeeze candidate, with a short float at 6.23% (equivalent to 5.79 days of average volume). It has been a rough couple of days for the stock, losing 13.8% over the last week.

4. ITT Educational Services Inc. (ESI): Offers postsecondary-degree programs in the U.S. that provide diplomas as well as associate's, bachelor's and master's degrees. Market cap of $1.49B. RSI(14) at 37.26. Net insider shares purchased over the last six months at 374.0K, which is 2.08% of the company's 17.96M share float. Might be undervalued at current levels, with a PEG ratio at 0.78, and P/FCF ratio at 3.26. The stock is a short squeeze candidate, with a short float at 35.91% (equivalent to 14.87 days of average volume). It has been a rough couple of days for the stock, losing 6.21% over the last week.

5. Central European Media Enterprises Ltd. (CETV): Operates as a vertically integrated media company operating broadcast, content and new media businesses in central and eastern European countries. Market cap of $557.62M. RSI(14) at 38.68. Net insider shares purchased over the last six months at 433.36K, which is 1.73% of the company's 25.11M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.29). The stock is a short squeeze candidate, with a short float at 11.53% (equivalent to 7.04 days of average volume). It has been a rough couple of days for the stock, losing 15.18% over the last week.

6. ECA Marcellus Trust I (ECT): Holds royalty interests in producing and development of horizontal natural gas wells for Energy Corporation of America (ECA). Market cap of $428.80M. RSI(14) at 32.67. Net insider shares purchased over the last six months at 209.31K, which is 1.64% of the company's 12.73M share float. The stock is currently stuck in a downtrend, trading 7.47% below its SMA20, 5.99% below its SMA50, and 7.81% below its SMA200. It has been a rough couple of days for the stock, losing 7.59% over the last week.

7. MAKO Surgical Corp. (MAKO): A medical device company, markets its advanced robotic arm solution and orthopedic implants for orthopedic procedures in the United States and internationally. Market cap of $1.20B. RSI(14) at 28.48. Net insider shares purchased over the last six months at 485.14K, which is 1.53% of the company's 31.66M share float. The stock is a short squeeze candidate, with a short float at 21.52% (equivalent to 8.07 days of average volume). It has been a rough couple of days for the stock, losing 12.12% over the last week.

8. Lincoln Educational Services Corporation (LINC): Provides career-oriented post-secondary education services in the United States. Market cap of $172.14M. RSI(14) at 39.84. Net insider shares purchased over the last six months at 291.38K, which is 1.37% of the company's 21.21M share float. The stock is currently stuck in a downtrend, trading 10.7% below its SMA20, 10.38% below its SMA50, and 42.8% below its SMA200. It has been a rough couple of days for the stock, losing 8.75% over the last week.

9. Seattle Genetics Inc. (SGEN): Focuses on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer and autoimmune diseases in the United States. Market cap of $1.76B. RSI(14) at 26.52. Net insider shares purchased over the last six months at 1.48M, which is 1.30% of the company's 113.41M share float. The stock is a short squeeze candidate, with a short float at 20.14% (equivalent to 9.42 days of average volume). It has been a rough couple of days for the stock, losing 7.57% over the last week.

10. Merge Healthcare Incorporated (MRGE): Provides health information technology interoperability solutions. Market cap of $435.30M. RSI(14) at 29.19. Net insider shares purchased over the last six months at 281.0K, which is 1.07% of the company's 26.38M share float. The stock is currently stuck in a downtrend, trading 21.95% below its SMA20, 24.74% below its SMA50, and 12.69% below its SMA200. It has been a rough couple of days for the stock, losing 10.59% over the last week.

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

Source: 10 Oversold Stocks Bought Up By Insiders