A major market correction has created much lower stock prices, and many insiders are taking advantage of this opportunity. The amount of insider buying has surged in the last few weeks. When you see insider buying at depressed prices, it often means the shares are oversold and offer great long-term value.
Some of these stocks look like good investments for the future, while others seem to be better as short-term trading opportunities. I have provided links for each stock which verify the insider buying filed with the SEC below. Here are the stocks:
ATP Oil and Gas Corp. (ATPG) is trading at $6.90. ATPG is an independent oil and gas company, based in Texas. These shares have traded in a range between $5.53 to $21.40 in the last 52 weeks. The 50-day moving average is $9.41 and the 200-day moving is $14.38. Earnings estimates for ATPG are expected to go from a loss in 2011 to a profit of $1.49 per share in 2012. The higher revenues and margins for 2012 are due to higher production coming from oil wells in the Gulf of Mexico. Insiders have been buying significant amounts of ATPG stock in recent weeks. In mid-November, one director bought 100,000 shares and the CEO bought 65,000 shares. This stock is heavily shorted, and any good news could cause a major rally.
Blue Nile, Inc. (NILE) shares are trading at $32.48. Blue Nile is an online retailer of jewelry. The shares have traded in a range between $30.32 to $64.45 in the past 52 weeks. The 50-day moving average is $39.17 and the 200-day moving average is $45.52. Earnings estimates for NILE are 92 cents per share in 2011, and $1.08 for 2012. Analysts are expecting revenues of about $360 million for 2011, and $388 million for 2012. That's only about 8% more, and that rate is not high enough to justify the current PE ratio
