Do you look for contrarian opportunities in the market? If so, here's a list you might be interested in.
We began by screening the services sector for stocks with negative sentiment, with float shorts above 10%.
We then screened these names for those 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.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
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Do you think these names will soon see short covering? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Vitacost.com, Inc. (VITC): Operates as an online retailer and direct marketer of health and wellness products. Market cap at $189.52M, most recent closing price at $5.80. Float short at 11.60%. Over the last six months, insiders were net buyers of 2,372,730 shares, which represents about 12.8% of the company's 18.54M share float.
2. Vistaprint N.V. (VPRT): Operates as an online provider of marketing products and services to micro businesses worldwide. Market cap at $1.25B, most recent closing price at $33.60. Float short at 30.60%. Over the last six months, insiders were net buyers of 992,076 shares, which represents about 3.86% of the company's 25.73M share float.
3. Overstock.com Inc. (OSTK): Operates as an online retailer offering discount brand, non-brand, and closeout merchandise in the United States. Market cap at $182.44M, most recent closing price at $7.66. Float short at 22.68%. Over the last six months, insiders were net buyers of 400,644 shares, which represents about 3.35% of the company's 11.96M share float.
*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.