5 Stocks Insiders Love Right Now

Children's Place Retail Stores

Another name in the specialty retail complex that insiders are jumping into here is Children's Place Retail Stores (PLCE), which provides apparel, accessories and shoes for children from newborn to 10 years old. Insiders are buying this stock into some modest weakness here since shares are off by 12% on the year.

Children's Place Retail Stores has a market cap of $1.13 billion and an enterprise value of $886.45 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 16.34 and a forward price-to-earnings of 12.32. Its estimated growth rate for this year is 11%, and for next year it's pegged at 16.7%. This is a cash-rich company, since the total cash position on its balance sheet is $204.83 million and its total debt is zero.

A director just bought 15,000 shares, or about $668,500 worth of stock, at $44.57 per share.

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From a technical perspective, PLCE is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. Shares of PLCE have found buying interest during the past month and change at around $44 to $43 a share. On Tuesday, this stock soared back above its 50-day moving average of $45.85 a share, and it's now trading with range of taking out its 200-day moving average of $48.97 a share.

If you're in the bull camp on PLCE, then I would look for long-biased trades once this stock breaks out above its 200-day at $48.97, and then above some near-term overhead resistance at $49.76 a share with high volume. Look for volume on that move that registers or above its three-month average action of 562,917 shares. If we get that action soon, then PLCE has a great chance of re-testing and possibly taking out its April high of $53.60 a share.

On the flipside, I would avoid PLCE or look for short-biased trades if it fails to trigger that move and then drops back below its 50-day at $45.85 a share with heavy volume. A high-volume move below its 50-day will setup PLCE to possibly take out those key near-term support zones at $44 to $43 a share.

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