This Day On The Street
Continue to site
ADVERTISEMENT
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

5 Stocks Insiders Love Right Now

Best Buy

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

Get Adobe Flash player

Insiders are buying up a large amount of stock in Best Buy (BBY - Get Report), a multinational retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances and related services. Insiders are buying this stock into weakness since shares are off around 17% so far in 2012.

Best Buy has a market cap of $6.57 billion and an enterprise value of $7.24 billion. This stock trades at an extremely cheap valuation, with a forward price-to-earnings of 5.12. Its estimated growth rate for the next quarter is 4.3%, and for next year it's pegged at 3.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.39 billion and its total debt is $2.03 billion.

The CEO just bought 100,000 shares, or around $1.82 million worth of stock, at $18.24 per share.

>>5 Stocks With New CEOs to Stay Away From

From a technical perspective, BBY is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the past two months, with shares dropping from a high of $27.75 to a recent low of $17.53 a share. During that sharp move lower, shares of BBY have mostly made lower highs and lower lows, which is bearish technical price action.

If you're bullish on BBY, then I would only look for long-biased trades once this stock triggers a breakout above some near-term overhead resistance at $20 a share with high-volume. Look for volume on that move that's near or above its three-month average volume of 8.4 million shares. If we get that move, then I would look for a quick pop towards its 50-day moving average of $21.82 or possibly its 200-day moving average of $24.08 a share. Keep in mind that in order to hit the 200-day, BBY will need to clear $22.69 with volume.

I would simply avoid BBY or look for short-biased trades if it fails to trigger that breakout, and then drops below that recent low of $17.53 a share with high-volume. A high-volume move below $17.53 will mean that BBY is trading at a new 52-week low, which is bearish price action.

As of the most recently reported quarter, Best Buy was one of the holdings at David Einhorn's Greenlight Capital.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BBY $32.61 -0.37%
CARB $11.81 0.25%
EGBN $43.96 0.39%
WTI $5.48 2.05%
VVTV $3.14 -5.14%

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.12 +5.48 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs