In the midst of the downgrade, the market values of many stocks have been plummeting. For many investors, this presents an enormous opportunity to buy into companies at a discounted price.
For this list, we wanted to find the companies that have lost the most value in the current quarter. From the universe of the top 600 losers, we looked for stocks have seen more insider buying than insider selling over the last six months (excluding exercised options).
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. This is the percentage of share float that is currently being shorted, where share float is the number of shares available for trading. 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.
For each company, we'll list the average number of shares purchased by insiders on the open market over the last six months as well as how much the value has dropped over the quarter.
Insiders seem to be enthusiastic about the prospects of their employers despite their massive losses over the quarter. Do they know something we don't? Full details below.
Data sorted by insider buying as a % of float. (Click here to access free, interactive tools to analyze these ideas.)
3. AbitibiBowater Common Stoc
4. American Superconductor
6. Vantage Drilling
7. Ardea Biosciences
8. Auxilium Pharmaceuticals
9. Central European Media Enterprises
10. TransAtlantic Petroleum
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.
Kapitall's Becca Lipman does not own any of the shares mentioned above. Insider Data sourced from Fidelity, all other data from Finviz.