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In the investment services complex, insiders are snapping up shares in
Och-Ziff Capital Management Group(OZM - Get Report), an institutional alternative asset manager. Insiders are buying this stock into weakness since shares are off by over 40% in 2011.
Och-Ziff Capital Management Group has a market cap of $852.90 million and an enterprise value of $1.41 billion. This stock trades at a cheap valuation; its forward price-to-earnings is just 6.41. This company's estimated growth rate for this year is -48.7%, and for next year it's pegged at 127.6%. This is far from a cash-rich company, with a total cash position on its balance sheet of $170.87 million and total debt of $721.08 million.
The CEO just
bought 273,799 shares, or about $2.9 million worth of stock, at $7.86 to $7.87 per share. A director also just bought 104,756 shares, or $827,664 worth of stock, at $7.86 to $7.93 per share.
From a technical standpoint, OZM is currently trading below both its 50-day and 200-day moving average, which is bearish. This stock just plunged from its October high of $11.32 down to a recent low of $7.32a share. Since hitting that low, the stock has rebounded and is now flirting with some near-term overhead resistance at $8.50 a share.
One could be a buyer of OCM once it sustains a higher volume move and close above $8.50 and then $9.01 (its 50-day) on high-volume. Look for volume that's tracking in close to or above its three-month average action of 1,582,580 shares. If we get that action soon, then look for OCM to trend back towards $10.50 to $11.97 (its 200-day) a share. Use a mental stop just under $8.50 if you get long off strength or weakness.
To see more stocks with notable insider buying, including
Memorial Production Partners(MEMP),
Laredo Petroleum(LPI), check out the
Stocks With Big Insider Buying portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.