5 Stocks With Huge Insider Buying

Adobe Systems

One software stock that insiders are showing some love to here is Adobe Systems (ADBE). Insiders are buying this stock into some decent strength, since shares are up 24% in the last six months.

Adobe Systems has a market cap of $18.83 billion and an enterprise value $16.75 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 22.92 and a forward price-to-earnings of 21.02. Its estimated growth rate for this year is -40%, and for next year it's pegged at 28.4%. This is a cash-rich company, since the total cash position on its balance sheet is $3.54 billion and its total debt is $1.51 billion. After you back out the debt, Adobe Systems has a total of $2.03 billion of cash on its balance sheet.

A beneficial owner just bought 5,000 shares, or around $190,000 worth of stock, at $38.06 per share.

From a technical perspective, ADBE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trading sideways for the last month, with shares moving between $36.65 on the downside and $38.78 on the upside. A high-volume move outside of the upper-end of that range will trigger a major breakout trade for shares of ADBE.

If you're in the bull camp on ADBE, then I would look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $38.50 to $38.78 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 4.2 million shares. If that breakout triggers soon, then ADBE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $43 a share.

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