This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Stocks With Unusual Insider Buying

Stocks in this article: PHPQMASIRENZOLTCBPOECLYHOO

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

Get Adobe Flash player

Resolute Energy

One oil and gas operations player that insiders are doing some large buying in is Resolute Energy (REN). This company is engaged develops oil and gas properties located in Utah, Wyoming, North Dakota and Texas. Insiders are buying this stock into some notable weakness here since shares are off by 16% so far in 2012.

Resolute Energy has a market cap of $531 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 12.68 and a forward price-to-earnings of 27.12. Its estimated growth rate for this year is -52.2%, and for next year it's pegged at 50%. This is far from a cash-rich company, since the total cash position on its balance sheet is $687,000 and its total debt is $188 million.

A beneficial owner just bought 557,000 shares, or around $4.77 million worth of stock, at $8.41 to $8.62 per share.

From a technical perspective, REN is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the past three months, with shares dropping from a high of $12.12 to a recent low of $8.09 a share. During that fall, shares of REN have consistently made lower highs and lower lows, which is bearish technical price action. That said, the stock just formed a near-term double bottom after buyers stepped in around $8.09 to $8.12 a share.

If you're bullish on REN, I would now be looking for long-biased trades if this stock manages to trigger a near-term breakout above some resistance at $8.73-to-$8.88 a share with high volume. Look for volume on that move that's near or above its three-month average action of 709,000 shares. If we get that move, then REN can easily hit its 50-day moving average of $9.84 a share and possibly tag its 200-day at $11.42 a share.

At last check, REN has started to move above those levels today since shares have hit an intraday high of $9 a share. Traders should now look for REN to maintain a trend above $8.73 to $8.88 with strong upside volume flows. On the flipside, I would avoid this stock or look for short-biased trades if the breakout doesn't hold, and then it takes out those support levels at $8.09 to $8.12 a share with heavy volume.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,133.25 +158.94 0.94%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,546.9470 -2.2790 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs