This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

6 Stocks With Big Insider Activity

Stocks in this article: PCBCFMBIFSCPXWATEQR

Fifth Street Finance

One more bank stock that has seen some notable insider buying recently is Fifth Street Finance (FSC). The CEO just bought 22,000 shares or $270,844 worth of stock, at an average price of $12.30. This finance company lends to and invests in small and mid-sized companies in connection with investments by private equity sponsors. So far in 2011, this stock has pretty much done nothing, trading flat with an increase of just over 1%.

From a technical standpoint, the stock recently fell below its 50-day moving average of $12.97 a share. The 200-day moving average sits at around $11.60 a share. Only buy this name if it can show some buying support above that 200-day average, otherwise it could easily fall to its next significant support area at around $10.74 a share.

Fifth Street Finances is one of the top-yielding financial services stocks, with a yield of more than 10%.

Stocks With Notable Insider Selling

The top five stocks on the insider selling list for this reporting period were Google (GOOG), with over $45 million worth of selling; Praxair (PX), at around $43 million; Waters (WAT), at $27 million; Campbell Soup (CPB), at close to $27 million; and Equity Residential (EQR), at over $24 million. The amount of selling in these five leading stocks totaled around $167 million.

Praxair

One company out of this group that saw some selling done by key insiders was Praxair, an industrial gas supplier in North and South America and one of the 20 top-yielding chemicals stocks. Praxair's primary products for its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). The stock has done decent so far in 2011, with shares up around 8%.

Over half of the selling at Praxair came from the company's president and CEO, who exercised options that amounted to 250,000 shares or $26.58 million worth of stock at an average price of $106.80. The company's CFO and general counsel also exercised some options that amounted to million worth of sales in their stock.

From a technical standpoint, traders should watch how this stock behaves at around it 50-day moving average of $101.83. If it trades below that price with heavy volume, then I would avoid this name. I would consider any selling volume that pushes the stock through that level that's above the three-month average of 1.4 million shares as heavy.

One big bullish bet on Praxair comes from RS Investment Management, which had a 3.1 million-share position in the stock as of the most recent period.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs