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Another stock that insiders are snapping up here is
Genesee & Wyoming(GWR - Get Report), which owns and operates short line and regional freight railroads and provides railcar switching services in the U.S., Australia, Canada, Belgium and the Netherlands. Insiders are buying this stock into some decent strength here, since shares are up over 30% in the last three months.
Genesee & Wyoming has a market cap of $2.84 billion and an enterprise value of $3.36 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 22.80 and a forward price-to-earnings of 18.22. Its estimated growth rate for this year is 6.1%, and for next year it's pegged at 23.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $50.22 million and its total debt is $633.31 million.
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A director just
bought 233,996 shares, or about $14.46 million worth of stock, at $61.84 per share.
From a technical perspective, GWR is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been trading inside of a tight range for the past two months, with shares moving between $62 on the downside and $67.95 a share on the upside. A move outside of that range will likely setup the next major trend for GWR.
If you're in the bull camp on GWR, then I would look for long-biased trades once it manages to break out above some near-term overhead resistance at $67.95 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 400,522 shares. If that breakout triggers soon, then GWR will have a great chance of trending north of $70 a share.
One can look to buy GWR off weakness to anticipate that breakout, and simply use a stop that sits around $63.74 to $63.51 a share. One could also buy off strength once GWR clears $67.95 with volume, and then simply use a stop at round $66 a share.