Interested in following the trend of insiders? Perhaps you enjoy stocks in the midst of upward momentum. If so, this list may be of interest of you.
Below we list the top 12 companies trading on the U.S. stock market rallying above their 20, 50, and 200 day moving averages (MA). What's more, they're experiencing significant levels of insider buying.
Do these two bullish indicators grab your attention?
If you want a more in-depth look into the implications of these achievements, see the definitions just below. If not, skip to the list of stocks and their relevant data. Do you think these stocks will continue to rally?
Rallying: When a stock is rallying, it means it is performing above its moving average for a given time period. It is presented as a percentage of performance relative to the average. When a stock is performing above its 20-day moving average (MA) as well as its 50 and 200 day moving averages, it signals bullish momentum. All the stocks in this list are rallying above their 20, 50, and 200-day MA.
Moving averages, or simple moving averages (MA or SMA) are the average price of the stock over the given time period (generally over the previous 20 days, 50 days or 200 days).
Momentum investing aims to capitalize on the continuance of existing trends and the strength behind it.
Insider trading: Many analysts follow insider buying trends because, after all, insiders know more about their companies than anyone else. Their investment activity is closely monitored and can tell us a lot about where they feel the business is heading.
Insider buying is represented as a percentage of the share float. Companies experiencing insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. Inversely, insider selling serves as a negative indicator.
Float short: This is the percentage of share float that is currently being shorted, where share float is the number of shares available for trading.
Now that you're armed with information, use the list below as a starting-off point for your own analysis.
List sorted by Insider buying as a percentage of share float. (Click here to access free, interactive tools to analyze these ideas.)
1. Lions Gate Entertainment (NYSE: LGF ) : Movie Production Industry. Market cap of $989.0M. The stock is currently trading 2.29% above its 20-Day SMA, 4.57% above its 50-Day SMA, and 9.59% above its 200-Day SMA. Net insider purchases over the last six months at 919.82Kshares, which is 14.31% of the company's 6.43M share float. The stock has gained 10.58% over the last year.
2. Valhi (NYSE: VHI ) : Synthetics Industry. Market cap of $6.22B. The stock is currently trading 6.56% above its 20-Day SMA, 1.18% above its 50-Day SMA, and 59.41% above its 200-Day SMA. Net insider purchases over the last six months at 109.31Kshares, which is 2.12% of the company's 5.15M share float. The stock has had a couple of great days, gaining 13.73% over the last week.
3. Eca Marcellus Trust I (NYSE: ECT ) : Oil & Gas Drilling & Exploration Industry. Market cap of $472.38M. The stock is currently trading 2.68% above its 20-Day SMA, 1.67% above its 50-Day SMA, and 0.28% above its 200-Day SMA. Net insider purchases over the last six months at 209.31Kshares, which is 1.64% of the company's 12.73M share float. The stock has gained 44.77% over the last year.
4. MAKO Surgical (Nasdaq: MAKO ) : Medical Appliances & Equipment Industry. Market cap of $1.28B. The stock is currently trading 6.67% above its 20-Day SMA, 3.52% above its 50-Day SMA, and 35.46% above its 200-Day SMA. Net insider purchases over the last six months at 485.14Kshares, which is 1.53% of the company's 31.71M share float. The stock has gained 197.01% over the last year.
5. News Corp. (Nasdaq: NWSA ) : Entertainment Industry. Market cap of $43.40B. The stock is currently trading 4.06% above its 20-Day SMA, 1.22% above its 50-Day SMA, and 1.35% above its 200-Day SMA. Net insider purchases over the last six months at 3.64Mshares, which is 0.16% of the company's 2.26B share float. The stock has gained 37.9% over the last year.
6. APAC Customer Services (Nasdaq: APAC ) : Business Services Industry. Market cap of $434.17M. The stock is currently trading 0.47% above its 20-Day SMA, 11.37% above its 50-Day SMA, and 34.86% above its 200-Day SMA. Net insider purchases over the last six months at 45.0Kshares, which is 0.16% of the company's 28.93M share float. The stock has gained 68.53% over the last year.
7. Susser Holdings (Nasdaq: SUSS ) : Grocery Stores Industry. Market cap of $354.23M. The stock is currently trading 14.39% above its 20-Day SMA, 19.56% above its 50-Day SMA, and 38.18% above its 200-Day SMA. Net insider purchases over the last six months at 10.0Kshares, which is 0.13% of the company's 7.75M share float. The stock has had a couple of great days, gaining 8.49% over the last week.
8. Hot Topic (Nasdaq: HOTT ) : Apparel Stores Industry. Market cap of $357.55M. The stock is currently trading 10.36% above its 20-Day SMA, 6.44% above its 50-Day SMA, and 23.48% above its 200-Day SMA. Net insider purchases over the last six months at 40.0Kshares, which is 0.10% of the company's 40.83M share float. The stock has had a couple of great days, gaining 8.12% over the last week.
9. PharMerica (NYSE: PMC ) : Drug Stores Industry. Market cap of $415.87M. The stock is currently trading 18.54% above its 20-Day SMA, 11.49% above its 50-Day SMA, and 16.74% above its 200-Day SMA. Net insider purchases over the last six months at 17.32Kshares, which is 0.06% of the company's 27.16M share float. The stock has had a couple of great days, gaining 28.87% over the last week.
10. Generac Holdings (Nasdaq: GNRC ) : Electronic Equipment Industry. Market cap of $1.31B. The stock is currently trading 6.04% above its 20-Day SMA, 2.28% above its 50-Day SMA, and 8.25% above its 200-Day SMA. Net insider purchases over the last six months at 15.0Kshares, which is 0.06% of the company's 25.38M share float. The stock has had a couple of great days, gaining 12.36% over the last week.
11. HEICO (NYSE: HEI ) : Aerospace/Defense Products & Services Industry. Market cap of $2.24B. The stock is currently trading 9.77% above its 20-Day SMA, 0.87% above its 50-Day SMA, and 11.46% above its 200-Day SMA. Net insider purchases over the last six months at 20.0Kshares, which is 0.06% of the company's 33.95M share float. The stock has had a couple of great days, gaining 18.98% over the last week.
12. Diamond Foods (Nasdaq: DMND ) : Processed & Packaged Goods Industry. Market cap of $1.69B. The stock is currently trading 6.57% above its 20-Day SMA, 2.97% above its 50-Day SMA, and 24.84% above its 200-Day SMA. Net insider purchases over the last six months at 8.23Kshares, which is 0.04% of the company's 19.82M share float. The stock has had a couple of great days, gaining 8.53% over the last week.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research. List compiled by Danny Guttridge.
Kapitall's Becca Lipman and Daniel Guttridge do not own any of the shares mentioned above. Insider data sourced from Yahoo, all other data sourced from Finviz.
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