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5 Stocks Insiders Are Jumping Into

Dollar Thrifty Automotive Group

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The last name to look at with some notable insider buying is rental and leasing player Dollar Thrifty Automotive Group (DTG), which is engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores. Insiders are buying this stock into some decent strength here, with shares up around 20% in the last six months.

Dollar Thrifty Automotive Group has a market cap of $2.33 billion and an enterprise value of $3.3 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 14.03 and a forward price-to-earnings of 15.64. Its estimated growth rate for this year is 6%, and for next year it's pegged at -2.2%. This is far from a cash-rich company, since the total cash position on its balance sheet is $492.09 million and its total debt is $1.47 billion.

A beneficial owner just bought 7,800 shares, or about $622,000 worth of stock, at $78.89 to $80.79 per share.

From a technical perspective, DTG is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past two months, with shares soaring from a low of $74.12 to a recent high of $83.58 a share. During that uptrend, shares of DTG have been printing mostly higher lows and higher highs, which is bullish technical price action. This move is quickly pushing DTG within range of triggering a major breakout trade.

If you're bullish on DTG, then I would look for long-biased trades once this stock triggers a break out above some past overhead resistance at $83.88 to $84.27 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 384,456 shares. If we get that move soon, then DTG will enter all-time-high territory, and the stock will likely continue its uptrend towards $90 to $100 a share.

I would simply avoid DTG or look for short-biased trades if it fails to trigger that breakout, and then drops back below its 50-day moving average of $79.88 a share with high volume. If we get that action soon, then DTG could possibly trade down towards $75 to $74 a share or lower.

To see more stocks with notable insider buying like New Energy Systems (NEWN), Nanosphere (NSPH) and Zeltiq Aesthetics (ZLTQ), check out the Stocks With Big Insider Buying portfolio on Stockpickr.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
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