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

5 Stocks With Big Insider Buying

Stock quotes in this article: SVNT, UBP, XTXI, LNCR, LNCE

Crosstex Energy

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

Get Adobe Flash player

A natural gas player whose insiders have snapped up a large amount of stock is Crosstex Energy (XTXI), which is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids through its subsidiaries. What's interesting here is that insiders are paying up to buy a huge amount of stock, since shares are up over 63% so far in 2011.

This company has a market cap of $684 million and an enterprise value of $1.45 billion. This is far from a cheap stock, with a forward price-to-earnings of 290. Crosstex's estimated growth rate for this year is 75%, and for next year it's pegged at 183%. This is not a cash-rich company, with a total cash position on its balance sheet of $7 million and total debt of a whopping $789.88 million.

A beneficial owner just bought about 1.8 million shares, or about $26.4 million worth of stock, at $14.89 per share.

From a technical standpoint, the stock is currently trading above its 50-day and its 200-day moving averages, which is bullish. Crosstex recently made a monster run from its August lows of $8.33 a share to its current price of just over $14.50 a share. I

f you want to buy this stock, I would look to buy it once it breaks out above $15.25 to $15.30 a share on big volume. Those levels have marked a double top for now unless the stock can reverse course and get back above that overhead resistance. I would look for a breakout on volume that's tracking in at close to or above its three-month average action of 984,745 shares. One could also buy this stock off any significant weakness with a stop just below the 50-day moving aveage of $12.13 a share.

4 of 6

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 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

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