4 Insider Stock Picks With Bullish Short Trends

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 |  Includes: CTCM, STRI, TXI, WBMD
by: Kapitall

Wish you could get an inside peek at your favorite companies? One idea is to consider insider buying trends. With this idea in mind, we ran a screen.

We began by screening for stocks with the confidence of their company insiders, such as members of the board and upper management, with significant net insider purchases over the last six months representing at least 2% of share float. Since most companies only have a handful of company insiders, net insider purchases representing 2% of share float is a big show of confidence in their employer's prospects.

We then screened for those with bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month representing at least 1.5% of share float. This indicates that short sellers are less bearish on these names than they were a month ago.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these stocks will outperform like their insiders expect? Use this list as a starting point for your own analysis.

List sorted by net insider purchases over the last six months as a percent of share float.

1. Texas Industries Inc. (NYSE:TXI): Engages in the production and supply of heavy construction materials in the United States. Market cap at $860.66M, most recent closing price at $30.76. Shares shorted have decreased from 4.68M to 4.43M over the last month, a decrease which represents about 1.98% of the company's float of 12.63M shares. Days to cover ratio at 15.26 days. Over the last six months, insiders were net buyers of 1,447,670 shares, which represents about 11.46% of the company's 12.63M share float.

2. CTC Media, Inc (NASDAQ:CTCM): Operates as an independent broadcasting company in Russia. Market cap at $1.38B, most recent closing price at $8.71. Shares shorted have decreased from 1.85M to 1.76M over the last month, a decrease which represents about 2.14% of the company's float of 4.21M shares. Days to cover ratio at 3.34 days. Over the last six months, insiders were net buyers of 163,808 shares, which represents about 3.89% of the company's 4.21M share float.

3. WebMD Health Corp. (NASDAQ:WBMD): Provides health information services to consumers, physicians and other healthcare professionals, employers, and health plans through its public and private online portals, mobile platforms, and health-focused publications in the United States. Market cap at $1.31B, most recent closing price at $22.41. Shares shorted have decreased from 3.57M to 2.52M over the last month, a decrease which represents about 2.62% of the company's float of 40.05M shares. Days to cover ratio at 4.34 days. Over the last six months, insiders were net buyers of 1,008,250 shares, which represents about 2.52% of the company's 40.05M share float.

4. STR Holdings, Inc. (NYSE:STRI): Engages in the manufacture and sale of encapsulants to the solar module industry. Market cap at $139.01M, most recent closing price at $3.34. Shares shorted have decreased from 7.31M to 6.75M over the last month, a decrease which represents about 1.67% of the company's float of 33.52M shares. Days to cover ratio at 13.82 days. Over the last six months, insiders were net buyers of 779,802 shares, which represents about 2.33% of the company's 33.52M share float.

*Short data and 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.