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Another stock in which insiders are loading up big on their own shares is
Equity One(EQY - Get Report), a real estate investment trust that owns, manages, acquires, develops and redevelops neighborhood and community shopping centers. This stock has done next to nothing all year, with shares off by less than 1%.
This company has a market cap of $1.97 billion and an enterprise value of $3.4 billion. The stock currently trades at a trailing price-to-earnings of 22 and a forward price-to-earnings of 15.7. Equity One isn't a cash-rich company, with over $1.47 billion in debt on its balance sheet and just $11.21 million in cash.
The chairman of the board just
bought 289,232 shares, or $5.2 million worth of stock at $17.83 to $18.00 per share. This company is due to report earnings on Aug. 4, so I consider this buying a sign of confidence ahead of the quarter.
From a technical standpoint, this stock fell sharply from its recent high of $19.84 to its recent low of $17.40 a share. The stock is now trading below its 50-day
moving average and just above its 200-day moving average of $17.88. What I like about this stock here is that on Friday, it bounced off the 200-day with
strong volume. Volume registered 1.5 million vs. the three-month average volume of 610,000 shares. If the stock can manage to hold above the 200-day now, then we could be seeing a short-term bottom.
One could be a buyer here and simply stop out below $17.40 a share in case the downtrend wants to resume. I would add to the position once it took out $18.55 and then add again once it trades above the 50-day moving average.
It's worth nothing that this is a heavily shorted stock. The current short interest as a percentage of the float for EQY stands at 10.8%. The bears have also been increasing their bets from the last reporting period by around 11.8%, or by 642,007 shares. The bears have cleaned up on this stock of late, but if the volume today is any indication, that could be about to change.
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