5 Stocks With Huge Insider Buying

Agree

One more stock to consider with some large insider buying is Agree (ADC), which is a REIT, focused primarily on the ownership, development, acquisition and management of single tenant retail properties net leased to national tenants. Insiders are buying this stock decent strength, since shares are up 20% during the last six months.

Agree has a market cap of $318 million and an enterprise value of $444 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 18.41 and a forward price-to-earnings of 13.14. Its estimated growth rate for this year is -8.2%, and for next year it's pegged at 7.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $542,000 and its total debt is $125.75 million.

A director just bought 50,000 shares, or about $1.36 million worth of stock, at $27.25 per share.

From a technical perspective, ADC is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last four months, with shares soaring from its low of $24.37 to its recent high of $28.68 a share. During that move, shares of ADC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ADC within range of triggering a near-term breakout trade.

If you're bullish on ADC, then I would look for long-biased as long as this stock is trending above its 50-day at $26.33, and then once if manages to break out above some near-term overhead resistance at $28.68 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 52,125 shares. If that breakout triggers soon, then ADC will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $33 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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