5 Stocks Insiders Love Right Now

Texas Industries

One more stock to consider is heavy construction materials supplier Texas Industries (TXI). Insiders are buying this stock into some decent strength here, since shares are up around 32% so far in 2012.

Texas Industries has a market cap of $1.14 billion and an enterprise value of $1.73 billion. This stock trades at a premium valuation, with a forward price-to-earnings of 93.09. Its estimated growth rate for this year is 55.9%, and for next year it's pegged at 40%. This is not a cash-rich company, since the total cash position on its balance sheet is $60.87 million and its total debt is $659.26 million.

A director just bought 10,000 shares, or around $414,000 worth of stock, at $40.90 to $41.74 share.

From a technical perspective, TXI is currently trading above its 200-day moving average and right below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last month and change, between $39.80 on the downside and $45.09 on the upside. A move outside of that trading range in the near future will likely setup the next major trend for shares of TXI.

If you're bullish on TXI, then I would look for long-biased trades as long as its trending above its 50-day at $41.49, and then once it manages to break out above some near-term overhead resistance levels at $45.09 to $45.68 a share with high volume. Look for a sustained move or close above those levels with volume that hits close to or above its three-month average action 333,261 shares. If that breakout triggers soon, then look for TXI to re-test or possibly take out its next major overhead resistance level at $47.15 a share.

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.

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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.

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