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Looking for undervalued stocks? Value investors look for opportunities to buy stocks that are trading at significant discounts to their fair value, with the assumption that they’ll move up to their fair value in the near future.

For this article, we treat analyst target price as a proxy for fair value. But because target prices are notoriously inflated, we only used the most pessimistic (the lowest) target prices, and for stocks with sufficient analyst coverage we only screened for stocks with 5 or more analyst ratings.

To further refine the list, we collected data on insider transactions, and identified a list of undervalued stocks that are being backed up by insider buying.

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.

Insiders and Wall Street analysts think there's more upside to these companies. Do you agree?

1. Roadrunner Transportation Systems, Inc. (NYSE:RRTS): Operates as a non-asset-based transportation and logistics service company. Of the 7 analysts that research the stock, the lowest target price stands at $19, which implies a potential upside of 34.56% from current levels at $14.12. Over the last six months, insiders were net buyers of 44,500 shares, which represents about 0.18% of the company's 24.16M share float.

2. Visteon Corp. (NYSE:VC): Visteon Corporation supplies automotive systems, modules, and components to automotive original equipment manufacturers worldwide. Of the 5 analysts that research the stock, the lowest target price stands at $65, which implies a potential upside of 34.41% from current levels at $48.36. Over the last six months, insiders were net buyers of 1,770,350 shares, which represents about 3.52% of the company's 50.25M share float.

3. GTX Inc. (NASDAQ:GTXI): Engages in the discovery, development, and commercialization of small molecules to treat cancer, osteoporosis and bone loss, muscle loss, and other serious medical conditions. Of the 6 analysts that research the stock, the lowest target price stands at $4, which implies a potential upside of 33.33% from current levels at $3. Over the last six months, insiders were net buyers of 6,978,510 shares, which represents about 33.03% of the company's 21.13M share float.

4. Live Nation Entertainment, Inc. (NYSE:LYV): Operates as a live entertainment company internationally. Of the 7 analysts that research the stock, the lowest target price stands at $11, which implies a potential upside of 30.95% from current levels at $8.4. Over the last six months, insiders were net buyers of 4,457,940 shares, which represents about 3.79% of the company's 117.68M share float.

5. MDC Partners Inc. (NASDAQ:MDCA): Provides marketing communications services to customers internationally. Of the 6 analysts that research the stock, the lowest target price stands at $17, which implies a potential upside of 28.79% from current levels at $13.2. Over the last six months, insiders were net buyers of 35,000 shares, which represents about 0.16% of the company's 22.22M share float.

6. CIBER, Inc. (NYSE:CBR): Operates as an information technology (NYSE:IT) consulting, services, and outsourcing company worldwide. Of the 5 analysts that research the stock, the lowest target price stands at $5, which implies a potential upside of 26.90% from current levels at $3.94. Over the last six months, insiders were net buyers of 43,000 shares, which represents about 0.07% of the company's 64.86M share float.

7. The Spectranetics Corporation (NASDAQ:SPNC): Designs, manufactures, and markets single use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its proprietary excimer laser system, the CVX-300. Of the 6 analysts that research the stock, the lowest target price stands at $9, which implies a potential upside of 25.0% from current levels at $7.2. Over the last six months, insiders were net buyers of 7,041 shares, which represents about 0.02% of the company's 32.41M share float.

8. Ardea Biosciences, Inc. (NASDAQ:RDEA): Focuses on the discovery and development of small-molecule therapeutics for the treatment of gout and cancer in the United States. Of the 10 analysts that research the stock, the lowest target price stands at $21, which implies a potential upside of 23.53% from current levels at $17. Over the last six months, insiders were net buyers of 495,549 shares, which represents about 2.16% of the company's 22.95M share float.

9. AbitibiBowater Inc. (ABH): Of the 7 analysts that research the stock, the lowest target price stands at $17.66, which implies a potential upside of 21.54% from current levels at $14.53. Over the last six months, insiders were net buyers of 3,608,951 shares, which represents about 4.54% of the company's 79.45M share float.

10. SureWest Communications (NASDAQ:SURW): Provides telecommunications, digital video, Internet, data, and other facilities-based communications services in northern California, the greater Kansas City, and Kansas and Missouri areas. Of the 5 analysts that research the stock, the lowest target price stands at $14, which implies a potential upside of 21.42% from current levels at $11.53. Over the last six months, insiders were net buyers of 6,250 shares, which represents about 0.05% of the company's 12.89M share float.

11. Triangle Petroleum Corporation (NYSEMKT:TPLM): Engages in the acquisition, exploration, and development of unconventional shale oil resources in the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. Of the 9 analysts that research the stock, the lowest target price stands at $7, which implies a potential upside of 20.69% from current levels at $5.8. Over the last six months, insiders were net buyers of 880,000 shares, which represents about 2.24% of the company's 39.32M share float.

12. Beneficial Mutual Bancorp Inc. (NASDAQ:BNCL): Operates as the holding company for Beneficial Bank that provides financial services to consumers and businesses in the United States. Of the 5 analysts that research the stock, the lowest target price stands at $10, which implies a potential upside of 19.47% from current levels at $8.37. Over the last six months, insiders were net buyers of 38,000 shares, which represents about 0.12% of the company's 31.55M share float.

13. Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR): Engages in the development and commercialization of novel therapeutics to treat severe lipid disorders. Of the 8 analysts that research the stock, the lowest target price stands at $19, which implies a potential upside of 18.90% from current levels at $15.98. Over the last six months, insiders were net buyers of 695,149 shares, which represents about 4.98% of the company's 13.95M share float.

14. Fortress Investment Group LLC (NYSE:FIG): A public investment firm specializing in investments in debt and equity securities of public and privately held companies. Of the 7 analysts that research the stock, the lowest target price stands at $4, which implies a potential upside of 18.34% from current levels at $3.38. Over the last six months, insiders were net buyers of 60,000 shares, which represents about 0.03% of the company's 182.11M share float.

Insider trading data and analyst target prices sourced from Yahoo Finance.

Source: 14 Undervalued Stocks Backed By Insider Buying