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Another name that insiders are jumping into in a big way is
EXCO Resources(XCO - Get Report). This company is an independent oil and natural gas company engaged in the exploration, exploitation, development and production of onshore North American oil and natural gas properties. Insiders are finding some deep value here since the stock is off by over 40% in 2011.
EXCO Resources has a market cap of $2.24 billion and an enterprise value of $3.83 billion. This stock trades at a reasonable valuation, since their trailing price-to-earnings is 19.53 and their forward price-to-earnings is 12.09. Their estimated growth rate for this year is 6.3% and for next year it's pegged at 19.1%. This is far from a cash-rich company, since the total cash position on their balance sheet is $56.42 million and their total debt is a whopping $1.71 billion.
A beneficial owner just
bought 848,200 shares, or $8.22 million worth of stock, at $9.63 and $9.79 per share. This same beneficial owner also recently
bought 363,063 shares, or $3.52 million worth of stock, between $9.66 and $9.84 per share.
From a technical standpoint, XCO is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock recently formed a double top in November at around $13.50 to $13.40 a share. Since forming that top, the stock has dropped sharply to a recent low of $9.40 a share. That drop down to $9.40 has managed to hold and XCO has also held its October low of $9.29 a share. This could mean that the stock is forming a bottom with buyers moving in frequently at around $9.40 to $9.50 in the last few weeks.
If you're bullish on XCO, then one could be a buyer off of any weakness and simply place a mental stop just a few percentage points below $9.29 a share. If you get long off weakness, then look to add once XCO takes out its 50-day moving average of $11.35 with volume. Look for volume on a move over $11.35 that tracks in near or above its three-month average volume of 3,093,140 shares. Target a run toward $12.36 to $13.40 a share if we get a high-volume move over the 50-day in the near future.