Who knows a company better than anyone else? Company insiders, such as members of the board and upper management. The stock buying trends of these insiders are a great source for investors looking for interesting stock ideas.
We ran a screen on the tech sector for stocks seeing the most significant net insider buying over the last six months. We also screened for companies that appear undervalued to earnings growth, with PEG below 1.
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.
Do you think these insiders are calling it right? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. 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 $493.06M. PEG at 0.79. Net insider shares purchased over the last six months at 810.0K, which is 4.85% of the company's 16.69M share float. The stock has had a good month, gaining 17.01%.
2. China TransInfo Technology Corp. (CTFO): Provides public transportation information technology systems and related technology solutions in China. Market cap of $88.45M. PEG at 0.40. Net insider shares purchased over the last six months at 159.89K, which is 1.48% of the company's 10.81M share float. The stock has lost 26.16% over the last year.
3. Iridium Communications Inc. (IRDM): Provides mobile voice and data communications services through satellites to businesses, the U. Market cap of $564.45M. PEG at 0.74. Net insider shares purchased over the last six months at 85.10K, which is 0.17% of the company's 48.77M share float. The stock is a short squeeze candidate, with a short float at 19.42% (equivalent to 18.38 days of average volume). The stock has lost 6.55% over the last year.
4. Viasystems Group Inc. (VIAS): Provides multi-layer printed circuit boards (OTCQB:PCBS) and electro-mechanical solutions worldwide. Market cap of $345.0M. PEG at 0.92. Net insider shares purchased over the last six months at 2.0K, which is 0.08% of the company's 2.58M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.09). The stock has lost 15.99% over the last year.
*Insider data sourced from Yahoo Finance, all other data sourced from Finviz.