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TheStreet Open House

5 Stocks With Big Insider Buying


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One communications services player that insiders are falling in love with here is AT&T (T), a provider of telecommunications services in the U.S. and worldwide. Services offered include wireless communications, local exchange services and long-distance services. Insiders are buying this stock into strength, with shares up around 25% so far in 2012.

AT&T has a market cap of $220 billion and an enterprise value of $282 billion. This stock trades at a rich valuation, with a trailing price-to-earnings of 50 and a forward price-to-earnings of 14.75. Its estimated growth rate for this year is 9.1%, and for next year it's pegged at 7.1%. This is far from a cash-rich company, since the total cash position on its balance sheet is $2.15 billion, and its total debt is a whopping $64.53 billion. This stock sports a dividend yield of 4.7%.

A director just bought 55,000 shares, or $2.05 million worth of stock, at $37.43 per share.

>>5 Dividend-Paying Stocks for the Next Decade

From a technical perspective, T is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares soaring from under $30 to its recent high of $38.28 a share. During that uptrend, shares of T have consistently made higher lows and higher highs, which is bullish technical price action.

If you're bullish on T, then I would wait for this stock to pullback closer to its 20-day moving average at $35.88 or its 50-day moving average of $34.95 a share. If we don't get those pullbacks and T holds above its recent breakout price of $36.19 a share, then this stock could easily hit $40 in the near future.

AT&T, which shows up on a recent list of 2 Dividend Stocks to Sell for Profits, was also featured in " 5 Big Stocks Ready to Slingshot Higher."

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