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A computer services player that insiders are jumping into right now is
Angie's List(ANGI), which operates a consumer-driven solution for its members to research, hire, rate and review local professionals for critical needs, such as home, health care and automotive services. Insiders are snapping up shares of this stock into weakness since it's down by over 20% so far in 2012.
Angie's List has a market cap of $733 million and an enterprise value of $674 million. This stock trades at a premium valuation, with a price-to-sales of 7.19 and a price-to-book of 22.22. Its estimated growth rate for this year is 39.4%, and for next year it's pegged at 57.7%. This is a cash-rich company, since the total cash position on its balance sheet is $84.57 million and its total debt 14.83 million. When you back out the debt, Angie's List has a total of $69.74 million of cash on its books.
A beneficial owner just
bought 230,799 shares, or around $2.99 million worth of stock, at $13.00 per share. A director also just
bought 38,461 shares, or around $500,000 worth of stock, at $13 per share.
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From a technical perspective, ANGI is currently trading below its 50-day moving average, which is bearish. This stock has been downtrending hard for the past two months, with shares dropping from a high of $19.82 to a recent low of $12.25 a share. During that move lower, shares of ANGI have consistently made lower highs and lower lows, which is bearish technical price action. On Tuesday, ANGI dropped below some near-term
support at $12.88 to $12.81 a share with heavy volume.
If you're bullish on ANGI, I would only look for long-biased trades if this stock can manage to find some high-volume buying interest near its all-time low of $10.77 a share. That $10.77 area is the lowest ANGI has traded since it IPOed back in late 2011. The way this stock is trending right now, it looks destine to re-test that level very soon. If buyers step in around $10.77 with upside volume that's near or above 283,016 shares, then it could be a good area to get long the stock.