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Analysts and investors follow potential takeover/leveraged buyout (LBO) targets because, on the announcement of a takeover, the target company's stock often jumps in price to reflect the takeover premium being paid for the company. This is obviously great for shareholders.

We compiled a list of rumored potential takeover/LBO targets from various sources including Minyanville and CNBC. We screened this stock universe for those with the most significant insider buying 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.

Do you think these companies are likely takeover candidates? Use this list as a starting point for your own analysis.

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

1. Saks Incorporated (NYSE:SKS): Operates fashion retail stores in the United States. Market cap of $1.57B. Net insider shares purchased over the last six months at 4.70M, which is 4.62% of the company's 101.62M 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 28.34% (equivalent to 10.99 days of average volume). The stock has lost 8.72% over the last year.

2. Seattle Genetics Inc. (NASDAQ: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 $1.90B. Net insider shares purchased over the last six months at 1.48M, which is 1.30% of the company's 113.40M share float. The stock is a short squeeze candidate, with a short float at 22.38% (equivalent to 13.56 days of average volume). The stock has gained 7.5% over the last year.

3. Dell Inc. (NASDAQ:DELL): Provides integrated technology solutions in the information technology industry worldwide. Market cap of $26.98B. Net insider shares purchased over the last six months at 17.23M, which is 1.13% of the company's 1.52B share float. The stock has gained 9.72% over the last year.

4. American Eagle Outfitters, Inc. (NYSE:AEO): Operates as an apparel and accessories retailer in the United States and Canada. Market cap of $2.94B. Net insider shares purchased over the last six months at 579.63K, which is 0.35% of the company's 166.69M share float. The stock has gained 8.83% over the last year.

5. Iridium Communications Inc. (NASDAQ:IRDM): Provides mobile voice and data communications services through satellites to businesses, the U. Market cap of $534.43M. 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 18.83 days of average volume). The stock has lost 10.32% over the last year.

6. Leap Wireless International Inc. (LEAP): Provides digital wireless services under the 'Cricket' brand name in the United States. Market cap of $724.13M. Net insider shares purchased over the last six months at 40.0K, which is 0.08% of the company's 48.80M share float. The stock is a short squeeze candidate, with a short float at 16.12% (equivalent to 6.09 days of average volume). The stock has had a couple of great days, gaining 10.98% over the last week.

*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz. To access the complete list of takeover targets, click here.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 6 Takeover/LBO Targets Being Snapped Up By Insiders