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One more stock seeing some interesting insider buying is regional banking player
Eagle Bancorp(EGBN - Get Report), which offers full commercial banking services to its business and professional clients as well as complete consumer banking services to individuals living and/or working in the service area. Insiders are buying this stock into modest strength since shares are up just over 10% so far in 2012.
Eagle Bancorp has a market cap of $324 million and an enterprise value of $343 million. This stock trades at a cheap valuation, with a trailing price-to-earnings of 12.75 and a forward price-to-earnings of 10.93. Its estimated growth rate for this year is 23.7%, and for next year it's pegged at 4.3%. This is not a cash-rich company, since the total cash position on its balance sheet is $142.15 million and its total debt is $160.88 million.
A director just
bought 46,001 shares, or about $736,000 worth of stock, at $16 per share.>>5 Bank Stocks Wilting Under the Summer Sun
From a technical perspective, EGBN is currently trading below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock has been uptrending for most of the year, with shares trading from a low of $13.87 to a recent high of $17.94 a share. During that uptrend, EGBN have mostly made higher highs and higher lows, which is bullish technical price action. That said, the stock just moved back below its 50-day moving average of $16.61 a share, and has started to move sideways between $15.91 and $16.25 a share.
If you're bullish on EGBN, then I would look for long-biased trades once this stock breaks out above $16.25, and then above its 50-day moving average of $16.61 a share with high-volume. Look for volume that's near or above its three-month average action of 42,776 shares. If we get that move, then I would look for EGBN to re-test and potentially take out its 52-week high of $17.94 a share.
I would simply avoid this stock or look for short-biased trades if EGBN moves below its near-term support at $15.91 to $15.81 with high-volume. If we get that move, look for EGBN to re-test and possibly take out its 200-day moving average of $14.79 a share.
To see more stocks with notable insider buying, including
Mead Johnson Nutrition(MJN), check out the
Stocks With Big Insider Buying portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.