Technical analysis adds a new dimension to the traditional methods of fundamental stock analysis. One such technical indicator is the “golden cross,” in which a stock’s 50-day moving average crosses above its 200-day moving average. This indicates recent upside momentum that may persist.
We ran a screen on stocks that just exhibited the golden cross for those also seeing significant net insider purchases over the last six months.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. (To access a complete analysis of this list's recent performance, click here.)
Do you think these stocks will continue moving higher? Use this list as a starting-off point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Motorola Solutions, Inc. (NYSE:MSI) provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap of $14.97B. SMA50 at $43.85 vs. SMA200 at $43.20 (current price at $45.99). Net insider shares purchased over the last six months at 17.60M, which is 6.72% of the company's 261.88M share float. The stock has gained 42.21% over the last year.
2. The Hain Celestial Group, Inc. (NASDAQ:HAIN) manufactures, markets, distributes, and sells natural and organic food, and personal care products in the United States and internationally. Market cap of $1.52B. SMA50 at $31.73 vs. SMA200 at $31.70 (current price at $34.50). Net insider shares purchased over the last six months at 1.23M, which is 3.41% of the company's 36.16M share float. The stock is a short squeeze candidate, with a short float at 6.03% (equivalent to 6.79 days of average volume). The stock has had a good month, gaining 10.22%.
3. VMware, Inc. (NYSE:VMW) provides virtualization and virtualization-based cloud infrastructure solutions primarily in the United States. Market cap of $43.31B. SMA50 at $91.84 vs. SMA200 at $90.87 (current price at $102.59). Net insider shares purchased over the last six months at 1.62M, which is 2.08% of the company's 77.90M share float. The stock has had a good month, gaining 10.22%.
4. CompX International Inc. (NYSEMKT:CIX) manufactures and sells security products, precision ball bearing slides, and ergonomic computer support systems used in the office furniture, transportation, postal, tool storage, appliance, and various other industries. Market cap of $199.48M. SMA50 at $13.79 vs. SMA200 at $13.70 (current price at $16.10). Net insider shares purchased over the last six months at 7.84K, which is 1.07% of the company's 731.77K share float. The stock has had a couple of great days, gaining 8.49% over the last week.
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.