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 Big Insider Buying

Dole Food

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

Get Adobe Flash player

The last name to consider with some large insider buying is food processing player Dole Food (DOLE), a producer of bananas and pineapples, and packaged fruit products, packaged salads and fresh-packed vegetables. Insiders are buying this stock into some decent strength here, since shares are up around 36% so far in 2012.

Dole Food has a market cap of $1.03 billion and an enterprise value of $2.57 billion. This stock trades at reasonable valuation, with a trailing price-to-earnings of 28.42 and a forward price-to-earnings of 8.17. Its estimated growth rate for this year is -5.1%, and for next year it's pegged at 9.2%. This is far from a cash-rich company, since the total cash position on its balance sheet is $94.12 million and its total debt is a whopping $1.64 billion.

The CEO and chairman of the board just bought 278,800 shares, or about $2.83 million worth of stock, at $9.67 to $10.45 per share.

From a technical perspective, DOLE is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been trading range bound for the past four months, with shares changing hands between $8.35 and $10.50 a share. In just the past few trading sessions, DOLE has started to take out that upper-end of that range, and break out above its March high of $11.39 with large volume.

Keep in mind that DOLE is one of the stocks that saw an unusual volume spike today that's being blamed one some technical computer glitches. Volume today is already over 4.3 million which is dramatically above its three-month average action of 805,922 shares.

If you're bullish on DOLE, then I would look for long-biased trades in this stock as long as it's trending above $10.50 to $11.39 a share with strong upside volume flows. I would consider any upside volume day that registers near or above 805,922 shares. If we continue to see that action, then DOLE has a great chance of re-testing and possibly taking out its 2011 highs at $14.58 to $14.99 a share.

I would simply avoid DOLE for now if it moves back below $10.50 to $10 a share with heavy volume. A move back below those levels could mean that the recent breakout has failed and the stock wants to re-visit those recent range lows.

To see more stocks with notable insider buying like Westport Innovations (WPRT), Fuel Systems Solutions (FSYS) and Puma Biotechnology (PBYI), check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

RELATED LINKS:



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 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.
6 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 17,104.68 -68.00 -0.40%
S&P 500 1,990.08 -4.21 -0.21%
NASDAQ 4,529.14 +1.4510 0.03%

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