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Why do insiders purchase shares of their companies? As Peter Lynch pointed out in his book, One Up On Wall Street, insiders sell for various reasons, which is usually not very informative unless they are dumping shares like there is no tomorrow. Insiders buy for one reason: they are signaling that they have confidence in the company's future performance. Insiders, especially executives and directors of companies tend to know their company very well. Tracking their stock purchase activities is a very good point to start for lucrative returns.

This article analyzes insider purchase activities when they buy at least $1,000,000 worth of shares during the past week, filed at the Securities and Exchange Commission. I have written a short analysis of each company. However, these are not buying and selling recommendations. Of course, insiders could be wrong. It is nevertheless a good starting point to add those stocks to watch list.

Cyberonics Inc. (NASDAQ:CYBX) is a healthcare company, specifically in the industry of medical appliances and equipment. It has a market cap of $1.21 billion. Its stock closed at $44.38 per share last Friday. Over the past week, Cyberonics had 2 insiders who purchased a total of 40,000 shares at the total value of $1,403,150. Multiple insider purchase occasions are usually a positive sign. Its stock price is about 2.20% below its 52-week high, usually a positive technical indicator on the company. This company's value seems reasonable with a sub-one PEG ratio, suggesting its growth is outpacing its valuation. I like Cyberonics' operating margin of 28.15%, a good sign for the company's financial health. The recent trading volume is below average.

TeamStaff, Inc. (TSTF) is a services company, specifically in the industry of staffing and outsourcing services. It has a market cap of $8.40 million. Its stock closed at $1.38 per share last Friday. Over the past week, TeamStaff had one insider who purchased a total of 2,840,736 shares at the total value of $3,692,956. The shares purchased account for 43.96% of the company's market cap. One concern is the company isn't profitable at this point. Thinning trading volume suggests that trading interest in the company is waning.

EXCO Resources Inc. (NYSE:XCO) is a basic materials company, specifically in the industry of independent oil and gas. It has a market cap of $1450.00 million. Its stock closed at $6.83 per share last Friday. Over the past week, EXCO Resources had 3 insiders who purchased a total of 3,900,000 shares at the total value of $26,720,079. Multiple insider purchase occasions are usually a positive sign. The shares purchased account for 1.84% of the company's market cap. EXCO Resources Inc. has a very healthy operating margin of 37.57%. The recent trading volume is below average. The company has a decent dividend payout that provides a minimum margin of safety. The prospect for this company is positive.

ZBB Energy Corporation (NYSEMKT:ZBB) is an industrial goods company, specifically in the industry of industrial electrical equipment. It has a market cap of $14.37 million. Its stock closed at $0.35 per share last Friday. Over the past week, ZBB Energy had 7 insiders who purchased a total of 4,918,444 shares at the total value of $1,869,005. Multiple insider purchase occasions are usually a positive sign. The shares purchased account for 13.01% of the company's market cap. Its price is near the bottom, at around 2.94% off its 52-week low. One concern is the company isn't profitable at this point. Over the past ten days, ZBB Energy has seen significantly higher than average trading volume.

Source: Million Dollar Insider Buys This Past Week