Insiders are selling shares at the fastest pace since July 2011 and bargains are getting harder to come by after a five month rally in the market. However, here are three stocks with recent insider buying that are significantly under analysts' consensus price targets.
Shoretel, Inc., together with its subsidiaries, engages in the development and sale of Internet protocol (NYSE:IP) communications systems for enterprises in the United States and internationally. (Business Description from Yahoo Finance)
4 reasons Shoretel is cheap at under $6 a share:
- Insiders have bought over 100,000 net shares in the last six months.
- The company has a fortress balance sheet with almost $2.50 in net cash per share.
- The median price target for the 9 analysts that follow Shoretel is $9 a share, more than 50% above its current price.
- Analysts also expect revenues to increase in the mid-teens for both FY2012 and FY2013. In addition, the company has beat earnings estimates three of the last four quarters.
Cooper-Standard Holding (COSH):
Cooper-Standard Holdings Inc., through its subsidiaries, engages in the design, manufacture, and sale of fluid handling, body sealing, and anti-vibration systems (AVS) components, systems, subsystems, and modules to automotive original equipment manufacturer (OEM) and replacement markets. (Business Description from Yahoo Finance)
4 reasons COSH is a buy at $43 a share:
- A beneficial owner of COSH just bought over $12 mm in new shares earlier in the month.
- The median price target for the two analysts that follow COSH is $65.50 a share, approximately 50% above its current price.
- The stock has a forward PE of 8 and less than 6 times operating cash flow
- The stock looks like it has bottomed and just crossed over its 200 day moving average (see chart).
Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. (Business Description from Yahoo Finance)
4 reasons Halliburton is a bargain at $36 a share:
- A director just bought $1.2 mm in new shares in early February.
- The company has beat earnings estimates each of the last four quarters and analysts expect the company to produce double digit sales growth in both FY2012 and FY2013.
- The median analysts' price target for the 30 analysts that cover Halliburton is $49.
- The stock is selling near the bottom of its five year valuation range based on P/E and P/B. It has a forward PE of under 8 and a minuscule five year projected PEG (.35).
Disclosure: I am long HAL.
Additional disclosure: I may also go long SHOR in next 72 hours