This Day On The Street
Continue to site
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 With Big Insider Buying

Chesapeake Energy

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

Get Adobe Flash player

Another name that insiders are snapping up here is Chesapeake Energy (CHK - Get Report), which is engaged in the exploration, development and acquisition of properties for the production of natural gas and oil from underground reservoirs. Insiders are finding some decent value here since this stock has plunged 14% so far in 2012.

Chesapeake Energy has a market cap of $12.16 billion and an enterprise value of $25.87 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 7.62 and a forward price-to-earnings of 11.62. Its estimated growth rate for this year is -82.5%, and for next year it's pegged at 232.7%. This is far from a cash-rich company, since the total cash position on its balance sheet is $438 million and its total debt is a whopping $13.33 billion.

A director just bought 27,700 shares, or around $498,000 worth of stock, at $18 per share. Another director also just bought bought 20,000 shares, or around $355,000 worth of stock, at $17.75 per share.

From a technical perspective, CHK is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock hit a bottom in May at $13.32 a share, after CHK plunged from over $25 a share. After hitting that bottom, shares of CHK have reversed its downtrend and started to uptrend with shares making higher lows and higher highs, which is bullish technical price action. That move has now pushed CHK within range of triggering a near-term breakout trade.

If you're in the bull camp on CHK, I would look for long-biased trades if this stock can manage to trigger a near-term break out above some resistance at $19.50 to $20.63 a share with high-volume. Look for volume on that move to register near or above its three-month average action of 36,050,900 shares. If we get that action, then CHK has a great chance of re-testing and possibly taking out its 200-day moving average of $22.30 a share.

On the flipside, I would avoid CHK or look for short-biased trades if it fails to trigger that breakout, and then drops below its 50-day moving average of $17.03, and below some near-term support at $16.32 a share with heavy volume. A high-volume move below those levels could set this stock up to trade down towards $15.50 to $14.50 a share.

As of the most recently reported quarter, Chesapeake was one of T. Boone Pickens' holdings.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


Follow Stockpickr on Twitter and become a fan on Facebook.
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 and maintains the website, 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.
6 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DYN $23.35 0.00%
CHK $8.24 0.00%
CYTR $2.85 0.00%
ETE $23.95 0.00%
HMPR $1.99 0.00%


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs