Another beaten-down stock whose key insiders are doing some large buying is Itron (ITRI), a technology company, offering end-to-end smart metering solutions to electric, natural gas and water utilities around the world. Insiders are finding some deep value here since this stock has been hammered down sellers by over 30% so far in 2011.
Itron has a market cap of $1.53 billion and an enterprise value of $1.85 billion. This stock trades at a reasonable valuation, since their forward price-to-earnings is just 9.71. Itron's estimated growth rate for this year is 2.20%, and for next year it's pegged at -5.4%. This is not a cash-rich company, with a total cash position on its balance sheet of $129.51 million and total debt of $469.25 million.The CEO and president just bought 27,000 shares, or about $1 million worth of stock, at $37.31 per share. The chairman of the board also just bought 1,000 shares, or $37,360 worth of stock, at $37.36 per share. From a technical standpoint, this stock is currently trading above its 50-day moving average and well below its 200-day moving averages, which is neutral trendwise. This stock had been stuck in a downtrend from its July high of $49.71 to a recent low of $26.90. Since hitting that low, the stock has rebounded and started to make higher highs and higher lows, which could be signaling a bullish trend change. >>Stocks Hitting 52-Week Highs If you like this stock, I would look to be a buyer once it breaks out above $40 and $41 a share on strong volume. Look for volume that's tracking in close to or above its three-month average action of 584,994 shares. If we get a high volume breakout above those levels, then I think this stock could make a run at its 200-day moving average of $47.36. You could also buy this stock off any notable weakness and anticipate the breakout. Either way, use a tight mental stop.
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