Even though 2012 is just getting started, a number of insiders-- in companies ranging from biotechnology to game developers-- have been making stock purchases that range in value from about $100,000 to nearly $10 million.
Insider buying can provide great insight into where a stock might be heading. 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 near the lows for the past year, and look like great potential buying opportunities. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are some stocks with strong insider buying in 2012:
Vical Inc. (NASDAQ:VICL) shares are trading at $3.76. Vical is a biotechnology company and is based in California. The 50-day moving average is $4.04 and the 200-day moving average is $3.72. The 52 week range is $1.70 to $5.30. Earnings estimates for VICL are for a loss of 13 cents per share in 2011 and a loss of 36 cents for 2012. Vical has a strong balance sheet with about $52 million in cash and no long term debt. The pipeline includes potential treatments for melanoma, a vaccine for pandemic influenza virus, and more. On January 6, 2012, an insider reported buying over 2.6 million shares worth about $10 million.
RAIT Financial Trust (NYSE:RAS) shares are trading at $5.03. RAIT is a real estate investment trust, based in Pennsylvania. These shares have traded in a range between $2.90 to $11.34 in the last 52 weeks. The 50-day moving average is $4.71 and the 200-day moving average is $5.18. RAIT is primarily involved with commercial real estate, which has started to rebound in some areas. A dividend of 24 cents per year is paid, which is equivalent to a 4.9% yield. Between the strong dividend payout and the book value of $22.83, this stock appears to have plenty of upside. Between January 5-9, 2012, an insider reported buying over 140,000 shares.
SunCoke Energy, Inc. (NYSE:SXC) is trading around $12.09. SunCoke is a leading manufacturer of metallurgical coke. The company has the capacity to produce over 5 million tons of metallurgical coke per year. These shares have traded in a range between $9.20 to $18.00 in the last 52 weeks. The 50-day moving average is $11.27. SXC is estimated to earn 99 cents per share in 2011, and $1.52 in 2012. With the stock down nearly 30% from the 52 week high and trading for about 8 times forward earnings estimates, the stock looks cheap. A number of insiders have been buying the stock recently. An insider reported purchasing 10,000 shares on January 9, 2012.
Glu Mobile, Inc. (NASDAQ:GLUU), is trading around $3.10. This company makes a number of popular games for smart phones with titles like Brain Genius, Hero Project, Stranded, Guitar Hero, Family Feud, Family Guy, and many more. These shares have traded in a range between $1.80 to $6.10 in the last 52 weeks. The 50-day moving average is $3.20 and the 200-day moving average is $3.73. GLUU is estimated to lose about 15 cents per share in 2011, and 20 cents per share in 2012. The company has a strong balance sheet with about $37 million in cash and no long term debt. This stock has declined sharply from the highs, but some investors think it is a bargain. As smart phone usage continues to grow around the world, so could demand for games. One insider reported buying over 60,000 shares on January 5, 2012.
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 educational purposes only.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.