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In the printing services complex, insiders are loading up on a large amount of stock in
VistaPrint(VPRT), which operates as an online provider of marketing products and services to micro businesses worldwide. Insiders are buying into some solid strength here since the stock is up over 20% so far in 2012.
VistaPrint has a market cap of $1.37 billion and an enterprise value of $1.41 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 20.32 and a forward price-to-earnings of 18.15. Its estimated growth rate for this year is -23%, and for next year it's pegged at 15.3%. This is not a cash-rich company, since the total cash position on its balance sheet is $67.47 million and its total debt is $146.50 million. After you back out the cash, VistaPrint has $79.03 million in debt on its books.
A beneficial owner just
bought 100,000 shares, or around $3.95 million worth of stock, at $38.67 per share.
From a technical perspective, VPRT is currently trading below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock has been struggling during the past two months whenever it's traded above $40 a share. Each time it's traded over $40 the stock has run into sellers, and it's now started to make lower highs. Lower highs are a bearish technical pattern and it shows that sellers are dumping the stock into any strength.
If you're bullish on VPRT, I would only look for long-biased trades once this stock breaks out above $38.05 and its 50-day moving average of $39.20 a share with high-volume. Look for volume on a move above those levels that hits near or well above its three-month average action of 513,258 shares. If we get that action soon, look for VPRT to run back into the $40s.I would only look for an extended up move if $41.92 was taken out with volume.
Traders should avoid this stock entirely from the long side if VPRT drops back below its near-term support at $35.88 and then back below its 200-day moving average of $34.29 with volume. A high-volume move below those levels could set this stock up for some serious downside.
To see more stocks with notable insider buying, including
Great Wolf Resorts(WOLF),
Opko Health(OPK) and
Sunrise Senior Living(SRZ), check out the
Stocks With Big Insider Buying portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.