If you like to trade with stock momentum trends, here are some ideas you might find interesting.
We ran a screen on the tech sector for stocks with significant net buying from company insiders over the last month. (Insiders, such as members of the board and upper management, report when they buy their company's shares - this is seen by analysts as a very bullish signal).
We then screened these insider stock picks for those recently exhibiting the "golden cross" technical indicator, in which a stock's 50-day moving average crosses above its 200-day MA. This signals recent momentum to the upside that may persist.
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 stocks' momentum will push them higher? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. China TransInfo Technology Corp. (CTFO): Provides public transportation information technology systems and related technology solutions in China. SMA50 at $3.74 and SMA200 at $3.63 (current price at $4.39). Over the last six months, insiders were net buyers of 569,135 shares, which represents about 5.28% of the company's 10.78M share float.
2. Numerex Corp. (NMRX): Provides business services, technology and products used in the development and support of machine-to-machine solutions for the enterprise and government markets worldwide. SMA50 at $8.16 and SMA200 at $8.11 (current price at $8.47). Over the last six months, insiders were net buyers of 5,000 shares, which represents about 0.06% of the company's 7.95M share float.
3. Web.com Group, Inc. (WWWW): Provides Internet services and online marketing solutions for small-to-medium sized businesses to build and maintain an online presence. SMA50 at $10.96 and SMA200 at $10.52 (current price at $13.07). Over the last six months, insiders were net buyers of 25,000 shares, which represents about 0.3% of the company's 8.44M share float.
*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.