5 Stocks Insiders Are Snapping Up

Apple

One technology leader that insiders are buying shares in here is Apple (AAPL). This company designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sells a variety of related software, services, peripherals, and networking solutions. Insiders are buying this stock into some notable weakness, since shares are off by around 14% in the last three months.

Apple has a market cap of $525 billion and an enterprise value of $498 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 12.66 and a forward price-to-earnings of 9.59. Its estimated growth rate for this year is 13.2%, and for next year it's pegged 16.6%. This is an extremely cash-rich company, since the total cash position on its balance sheet is $29.13 billion and its total debt is zero.

A director just bought 1,780 shares, or about $1 million worth of stock, at $562.13 to $565.08 per share.

From a technical perspective, AAPL is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last two months, with shares falling from a high of $701.86 to its recent low of $505.75 a share. During that downtrend, shares of AAPL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of AAPL have recently bounced strongly off that low and are now approaching a near-term breakout trade.

If you're bullish on AAPL, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance at $571.95 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 19,732,700 shares. If that breakout triggers soon, then look for APPL to re-test or possibly take out its next major overhead resistance levels at its 200-day at $593.15 a share, or at its 50-day at $622.90 a share.

J.C. Penny

Another name in the department store complex that insiders are jumping into here is J.C. Penny (JCP). This is a holding company, whose business consists of selling merchandise and services to consumers through its department stores and direct channels. Insiders are buying this stock into some extreme weakness, since shares are off by over 50% so far in 2012.

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