One medical equipment and supplies player whose insiders are doing some decent buying is Quidel (QDEL), which is engaged in the development, manufacturing and marketing of diagnostic testing solutions. Insiders are buying into some solid strength here since shares are up over 20% so far in 2012.
Quidel has a market cap of $605 million and an enterprise value of $591 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 80.66 and a forward price-to-earnings of 37.37. Its estimated growth rate for this year is 4.3%, and for next year it's pegged at 104.2%. This is just barley a cash-rich company, since the total cash position on its balance sheet is $61.33 million and its total debt is $49.77 million.A director just bought 65,815 shares, or about $1.1 million worth of stock, at $16.48 to $16.65 per share. The president and CEO also just bought 10,000 shares, or about $165,000 worth of stock, at $16.55 per share. >>5 Big Stocks to Trade for Gains From a technical perspective, QDEL is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock found some buying interest at around $14 in February, and since then it has ran up big to its current price of over $18 a share. This move has now pushed QDEL within range of a big breakout trade. If you're a bullish on QDEL, I would look for long-biased trades if the stock can manage to break out above $18.48 to $19.09 with high volume. Look for volume on that move that's near or well above its three-month average of 169,075 shares. Keep in mind that the current relative strength index (RSI) reading for QDEL is overbought at 81.55. If that breakout doesn't trigger soon with high-volume, then this stock is vulnerable for a selloff. I would only look for to get long if QDEL is trending about those breakout levels in the near-term.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV