Insiders have made significant new stock buys in 2012. These investments are being made in a wide variety of industries from publishing to truck makers to biotechnology.
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 buying opportunities. Others look like potential trades. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are some stocks with notable insider buying. The transaction values range from about $30,000 to over $3 million in 2012:
Pharmacyclics, Inc. (PCYC) is trading at about $18.74. This California-based biopharmaceutical company is working on treatments for cancer and immune diseases. These shares have a 52 week range of $4.75 to $19.46. The 50-day moving average is $14.94 and the 200-day moving average is $11.31, so the shares are trading above these key support levels. Book value is stated at $1.37 per share. Earnings estimates indicate a loss of 83 cents per share for 2011, and a loss of 77 cents for 2012. Pharmacyclics shares were trading around $12 in October, but the stock has been rising steadily. After a big run, it's likely that this stock will drop back to at least $15 where it has seen recent support, so waiting for dips makes sense. On January 16, 2012, an insider reported buying over a 100,000 shares in a series of transactions worth over $3 million.
Paccar, Inc. (PCAR) shares are trading at $44.59. This company manufactures commercial vehicles such as Kenworth, Peterbilt, and DAF. The 50-day moving average is $39.58 and the 200-day moving average is $42.10. The 52 week range is $31.57 to $56.88. Earnings estimates for Paccar are at $2.72 per share in 2011 and $3.34 for 2012. Paccar pays a dividend of 72 cents per share which is equivalent to a 1.7% yield. This stock dropped to about $32 in October, but it has been rising ever since. This is a solid company that makes legendary brands, but the stock looks like it could be poised for a correction. I would wait for dips to about $40 or below before buying. On January 17, 2012, an insider reported buying 1,000 shares, which is worth about $40,000.
Gannett Incorporated (GCI) is trading for $15.22 per share. Gannett is a major publishing company that owns about 83 newspapers nationwide including the well-known USA Today. The 50-day moving average is $12.70 and the 200-day moving average is $12.45. These shares have traded in a range between $8.28 to $18.93 in the last 52 weeks. Earnings estimates for Gannett are about $2.13 per share in 2011 and $2.19 for 2012. GCI pays a dividend of 32 cents per share which is equivalent to a yield of 2.1%. Gannet also trades for just a little bit above book value which is $10.40. This stock was trading around $14 in July and has since plunged to current levels. This stock could remain weak for awhile so it only makes sense to average in and buy on dips below $10. A director just bought 2,000 shares, on January 17, 2012, which is worth about $30,000.
Incyte Corporation (INCY) shares are trading at $17.92. Incyte is developing potential treatments for cancer, inflammatory, autoimmune and other diseases. These shares have a 52 week range of $11.76 and $21.15. The 50-day moving average is $14.23 and the 200-day moving average is $16.07. Earnings estimates for Incyte are for a loss of $1.46 per share in 2011, and a loss of 94 cents for 2012. Incyte has partnerships with Pfizer (PFE), Novartis (NVS), Eli Lilly and Company (LLY). In November, 2011, the U.S. Food and Drug Administration (FDA) granted marketing approval for Incyte's "Jakafi", which is a treatment for myelofibrosis (a type of blood cancer). If this treatment does well, these shares could move substantially higher, which is what some insiders seem to be expecting. On January 18-19, 2012, a director purchased 50,000 shares, which is worth over $500,000.
Valence Technology, Inc. (VLNC) is trading around $1. This company has proprietary technology and makes energy storage systems for use in electric vehicles, wheelchairs, and many other devices. These shares have traded in a range between 70 cents to $1.67 in the last 52 weeks. The 50-day moving average is 88 cents and the 200-day moving average is $1.10. Earnings estimates are at loss of 9 cents for 2011, and profit of 3 cents for 2012. This stock has dipped to about 70 cents in the past few weeks, but has jumped back over $1. It could be an interesting trade on dips to about 85 cents or less. On January 13, 2012, an insider reported buying over 2 million shares, which is worth over $2 million.
Disclaimer: 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 have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.