In the food processing sector, a key insider has done some notable buying in Snyder's-Lance (LNCE), which manufactures, markets and distributes a variety of snack food products, including pretzels, sandwich crackers, chips, sugar wafers and nuts. Insiders must be seeing value here, with the stock down by around 14% so far in 2011.
This company has a market cap of $1.36 billion and an enterprise value of $1.62 billion. The stock trades at a reasonable valuation, with a forward price-to-earnings ratio of 16.25. Snyder's estimated growth rate for the next quarter is 8.7%, and for next year it's pegged at 50%. This is not a cash-rich company; its total cash position on their books is just $11.15 million, and it total debt is over $261 million.The chairman of the board just bought 23,424 shares, or $477,836 worth of stock, between $20.20 and $20.45 per share. This same director has also been steadily buying large amounts of stock since March. From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock recently formed a double top at $22.50 a share and has since then dropped back below those key moving averages I mentioned above. If you're looking to buy this stock, I would get long off any weakness that takes it under $19 a share. Over the past year, that's been the best level to get into the stock and play it for a bounce back above $20. I would stop out of this trade if LNCE moves below some big near-term support at $18.30 a share. Snyder's-Lance is one of the top-yielding food and beverage stocks. To see more stocks with notable insider buying, including Zogenix (ZGNX), Alpha & Omega Semiconductor (ASOL) and Strategic Hotels & Resorts (BEE), check out the Stocks With Big Insider Buying portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV