If you're in the bull camp on WFR, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $2.59 to $2.69 a share, and then once it takes out its 200-day at $2.85 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 4,373,750 shares. If that breakout triggers soon, then WFR will set up to re-test or possibly take out its next major overhead resistance levels at $3.35 to $3.77 a share.
The last name to consider with some huge insider buying is biotechnology and drugs player Genomic Health (GHDX). This company is engaged in the development and commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer, allowing physicians and patients to make individualized treatment decisions. Insiders are buying this stock into some recent weakness, since shares are down by over 20% in the last three months.
Genomic Health has a market cap of $842 million and an enterprise value of $720 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 94.81 and a forward price-to-earnings of 83.03. Its estimated growth rate for this year is -19.2%, and for next year it's pegged at 57.1%. This is a cash-rich company, since the total cash position on its balance sheet is $126.21 million and its total debt is zero.A director and beneficial owner just bought 926,939 shares, or around $25.72 million worth of stock, at $25.83 to $27.99 per share. From a technical perspective, GHDX is currently trending well 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 $36.83 to its recent low of $25.25 a share. During that downtrend, shares of GHDX have been consistently making lower highs and lower lows, which is bearish technical price action. Shares of GHDX also gapped lower during that timeframe from around $32 to $25.25 a share with huge selling volume. That said, the stock has started to stabilize and move within range of triggering a near-term breakout trade.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV