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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks With Big Insider Buying

Nanosphere

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One stock that's seen some big insider buying recently is Nanosphere (NSPH), which develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene System, that enables sensitive genomic and protein testing on a single platform. Insiders are finding some deep value here since the stock is down over 58% so far in 2011.

This company has a current market cap of $50 million and an enterprise value of $21 million. This is a cash-rich company, with $30 million in cash on its balance sheet and zero debt. The U.S. Food and Drug Administration said on June 21 that it would not approve Nanosphere's Plavix Metabolism diagnostic test until the company submits additional data. Following that news, the stock plunged from around $2.30 to its current price of $1.80 a share.

A director just bought 285,000 shares, or $459,201 worth of stock, at $1.57 to $1.64 per share. This same director also bought 2,700,000 shares, or $5.94 million worth of stock, at $2.20 back on May 10.

From a technical standpoint, this stock has been crushed so far this year, falling from a high of $5.54 to its current level of $1.80 a share. This stock is now trading below both its 50-day and 200-day moving averages, which is bearish. That said, NSPH recently hit a short-term bottom at $1.46, and upside volume has been expanding dramatically. One big up day last week saw volume of 6.4 million, which is well above the three-month average volume of 489,000 shares.

>>Practice your stock trading strategies and win cash in our stock game.

If you're looking to buy this stock, I would add this name on any weakness with a stop just below $1.46 a share. I would only add to a long position if you see NSPH trade back above its 50-day moving average of $2.37 a share on strong volume.

It's worth noting that NSPH has a reasonable short interest of 7.7% of the float. The bears have increased their bets from the last reporting period by 5.4%, or by around 109,000 shares.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

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