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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Stocks Insiders Love Right Now

American International Group

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

Get Adobe Flash player

One insurance property and casualty player whose insiders are snapping up a decent amount of stock in is American International Group (AIG), an international insurance organization, serving customers in more than 130 countries. Insiders are buying into strength here since shares of AIG are up over 28% so far in 2012.

American International Group has a market cap of $56 billion and an enterprise value of $82 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 3.14 and with a forward price-to-earnings of 10.67. Its estimated growth rate for this year is 156.9%, and for next year it's pegged at 6.1%. This is far from a cash-rich company, since the total cash position on its balance sheet is $48.54 billion and its total debt is $75.85 billion. When you back out its cash, AIG has a whopping $27.21 billion in debt on its balance sheet.

A director just bought 15,000 shares, or $421,000 worth of stock, at $28.06 to $28.08 per share.

From a technical perspective, AIG is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been in a monster uptrend for the past three months, rising from around $20 to its current price of close to $30 a share. This monster move has pushed shares of AIG into overbought territory since its current relative strength index (RSI) reading is now 78.79.

If you're bullish AIG, I would look for short-term long biased trades once it breaks out above some overhead resistance at $30.09 to $30.34 with high-volume. Look for volume on that move that registers near or well above its three-month average volume of 5,295,120 shares. For a longer-term entry point, I would look for long-biased trades off a pullback near some previous support levels at $28 to $26 a share.

AIG shows up in the portfolio of Bruce Berkowitz's Fairholme Capital Management, with a 92 million-share position as of the most recently reported quarter.

Stock quotes in this article: DELL, NLSN, SBGI, AIG, WLT 

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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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