This Day On The Street
Continue to site
ADVERTISEMENT
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

Insiders And Analysts Agree These 5 Stocks Are Trading Below Value

If you believe in the wisdom of analysts, you probably find stocks that have discrepancies between current price and target price attractive investments. With that in mind we created a list of US stocks trading below their lowest analyst target price and with at least 5 analysts target prices.

Why? Analyst prices tend to be inflated, so we ran a screen that used the most pessimistic analyst target price as the benchmark for our analysis. In addition, we only focused on companies that have more than 5 analyst target prices to make sure we only focus on companies that have decent analyst coverage. Furthermore, analyst ratings can become outdated, with a minimum of 5 ratings we increase our chances of using recent data.

But wait, There’s more.

We also screened for significant net insider buying activity over the past six months. Those who work for the company tend to know more about their companies than anyone else. Their investment activity of their company is closely monitored and can tell us a lot about where they feel the business is heading.

Here we look at insider buying as a percentage of the share float. Companies experiencing net insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. (Inversely, insider selling serves as a negative indicator.)

Business Section: Investing Ideas

We were left with 5 stocks, all listed below in order of potential upside to analyst ratings.

Take a look at these names and the data associated with the screens (insider buying, analyst rating). Do you agree that these stocks are trading below value?

Use this list as a starting point for your own analysis.
INTERACTIVE CHART: Press play to see changes in average analyst ratings over the past two years:

1. Keynote Systems Inc. ( KEYN): Provides Internet and mobile cloud monitoring solutions worldwide. Market cap at $236.52M, most recent closing price at $13.34. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $17. This implies a potential upside of 28.69% from current levels around $13.21. Over the last six months, insiders were net buyers of 561,662 shares, which represents about 4.21% of the company’s 13.35M share float.

 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs