Interested in defensive sectors such as healthcare? Many people invest in defensive sectors to protect against losses during recession. If you're interested in this idea, here's a list you might also like.
We ran a screen on the healthcare sector for stocks that just exhibited the bullish technical signal "golden cross," in which a stock's 50-day moving average crosses above its 200-day MA, indicating recent upside momentum that may persist.
We then screened for those with the highest net insider purchases over the last six months. Insiders such as members of the board and upper management report when they buy shares in their company - this is viewed very positively by analysts.
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.
Do you think these stocks will continue moving 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 Biologic Products, Inc. (NASDAQ:CBPO): Engages in the research, development, manufacturing and sale of plasma-based pharmaceutical products. SMA50 at $9.86, SMA200 at $9.85 (current price at $10.09). Over the last six months, insiders were net buyers of 795,860 shares, which represents about 11.93% of the company's 6.67M share float.
2. Wright Medical Group Inc. (NASDAQ:WMGI): Engages in the design, manufacture and marketing of devices and biologic products for the extremity, hip, and knee repair and reconstruction. SMA50 at $15.75, SMA200 at $15.68 (current price at $17.61). Over the last six months, insiders were net buyers of 1,922,404 shares, which represents about 6.94% of the company's 27.69M share float.
3. Synta Pharmaceuticals Corp. (NASDAQ:SNTA): Focuses on the discovery, development and commercialization of small molecule drug candidates for treating severe medical conditions, including cancer and chronic inflammatory diseases. SMA50 at $4.54, SMA200 at $4.47 (current price at $4.94). Over the last six months, insiders were net buyers of 507,059 shares, which represents about 1.77% of the company's 28.65M 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.