5 Stocks Insiders Love Right Now
American International Group
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. Follow @stockpickrSelect the service that is right for you!
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