Insiders usually know their companies better than the average investor or stock analyst, so when they use their own money to buy shares, it can be very meaningful. Some of these stocks are trading near the 52 week high and even appear overvalued. Others are trading near the lows for the past year, and look like great buying opportunities. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are some stocks with significant new insider buying:
Spectrum Brands International (SPB) is trading around $27.40. Spectrum Brands owns a number of leading consumer brands such as Rayovac, Remington, Varta, George Foreman, Black & Decker, Toastmaster, Farberware and others. These shares have traded in a range between $20.11 to $36.61 in the last 52 weeks. The 50-day moving average is $26.07 and the 200-day moving average is $27.96. SPB is estimated to earn about $2.49 per share in 2011, and $2.91 in 2012. This stock looks like it has upside potential, but I would wait to buy on pullbacks. An insider recently purchased over 20,000 shares, see that here
Sunrise Senior Living, Inc. (SRZ) is trading around $6.48. This company offers nursing care, independent living facilities and other services for seniors. The 50-day moving average is $5.23, and the 200-day moving average is $7.51. These shares have traded in a range between $3.68 to $12.44 in the last 52 weeks. SRZ is estimated to lose about 38 cents per share in 2011, and earn 5 cents in 2012. This stock was in a major downtrend for most of 2011, but it bottomed out around October and has been trending higher ever since. It looks like an interesting buy on dips. One insider recently bought over 380,000 shares. You can see the insider buying here
Willbros Group, Inc. (WG) shares are trading at $3.67. Willbros provides engineering, construction and other services, primarily to the oil and gas industry. These shares have traded in a range between $3.13 to $12.55 in the last 52 weeks. The 50-day moving average is $4.17 and the 200-day moving average is $7.02. Earnings estimates indicate a loss of 83 cents per share for 2011, and a profit of 45 cents for 2012. Willbros stock looks like a possible turnaround candidate. I think the shares are cheap enough to start buying on dips and the insider buying is a good sign. One director recently bought 10,000 shares, see that here
Chimera Investment Corporation (CIM) is trading around $2.51. Chimera is a real estate investment trust, and is based in New York. These shares have traded in a range between $2.38 to $4.34 in the last 52 weeks. The 50-day moving average is $2.63 and the 200-day moving average is $2.98. CIM is estimated to earn about 54 cents per share in 2011, and 46 cents in 2012. CIM pays a very rich dividend of 44 cents per share which is equivalent to a 16.7% yield. The book value is stated at $3.27. Chimera just paid out an 11 cent dividend (per share) on December 27, 2011. This company has a solid management team, and the stock is clearly undervalued. A director recently bought 100,000 shares, and other insiders have been buying recently as well, see that here
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 am long CIM.