Another name in the discount retail complex that insiders are loading up on here is Sears Holdings (SHLD - Get Report), an integrated retailer with over 3,900 full-line and specialty retail stores in the U.S. and Canada. Insiders are buying this stock into big weakness, since shares are off by 27% in the last six months.
Sears Holdings has a market cap of $4.79 billion and an enterprise value of $8.09 billion. This stock trades at a reasonable valuation, with a price-to-sales of 0.12 and a price-to-book of 1.22. Its estimated growth rate for this year is 44.6%, and for next year it's pegged at 20.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $622 million and its total debt is a whopping $4 billion.>>4 Stocks Rising on Big Volume A director and beneficial owner just bought 332,048 shares, or $13.57 million worth of stock, at $40.86 to $40.97 per share. From a technical perspective, SHLD is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending modestly for the last month, with shares moving higher from its low of $38.40 to its recent high of $45.74 a share. During that move, shares of SHLD have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares SHLD within range of triggering a near-term breakout trade. If you're in the bull camp on SHLD, then I would look for long-biased if this stock manages to break out above its 50-day at $46.57 a share and then its 200-day at $49.76 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.3 million shares. If that breakout triggers soon, then SHLD will set up to re-test or possibly take out its next major overhead resistance levels at $55 to $57.50 a share.
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