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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks With Big Insider Buying

Sears Holdings

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

Get Adobe Flash player

One retail department and discount operator whose insiders are buying a gigantic amount of stock in is Sears Holdings (SHLD), the parent company of Kmart and Sears Roebuck. Insiders are buying into extreme weakness since this stock is down around 57% in the last six months.

Sears Holdings has a market cap of $3.37 billion and an enterprise value of $7.44 billion. This stocks trades at a price-to-sales of 0.08, and it trades at a price-to-book of 0.46. Its estimated growth rate for this year is -480%, and for next year it's pegged at 4.5%. This is far from a cash-rich company, since the total cash position on its balance sheet is $624 million and its total debt is a whopping $4.55 billion.

A director and beneficial owner just bought 409,200 shares, or about $12.2 million worth of stock, at $30.99 per share. This same director also just bought 4.7 million shares, or about $136.6 million worth of stock, at $29.21 per share.

From a technical standpoint, SHLD is currently trading substantially below both its 50-day and 200-day moving averages, which is bearish. This stock has been stuck in a nasty downtrend, with shares dropping from the October high of $82.74 to a recent low of $28.89 a share. Since hitting that low, this stock has started to rebound a bit, but it's still at risk of downtrending more if it can't hold that $28.89 low. The current relative strength index RSI reading for SHLD is 25.5, which demonstrates a very oversold condition.

If you're a bull on SHLD, one could be a buyer of this beaten-down stock once it triggers a breakout trade above $34.65 and then $38 a share with high volume. Look for volume that's near or above its three-month average action of 1.2 million shares. Any potential move above $38 with volume should be considered significant because that's a recent gap down day high price.

If SHLD can get back above $38, then it has the chance to start filling that gap down from $47 a share. I would simply use a mental stop that's a few percentage points below $34.65 if you get long off the breakout.

Sears, which is rated D+ sell by TheStreet Ratings, was also recently featured in "7 Hot Stocks on Traders' Radars" and "7 Extreme Stocks to Trade in This Volatile Market."

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 16,552.10 -11.20 -0.07%
S&P 500 1,930.71 +0.04 0.00%
NASDAQ 4,362.1590 -7.6140 -0.17%

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