Here's a look at
five stocks with big insider buying
per SEC filings.
>>5 Bottoming Stocks Starting to Signal a Buy
A chemical manufacturing stock that insiders are buying is
(KRO - Get Report)
, a global producer and marketer of value-added titanium dioxide pigments, or TiO2, a base industrial product used in a wide range of applications. Insiders are buying this stock into strength, since shares have spiked higher by 38% during the last three months.
Kronos Worldwide has a market cap of $2.2 billion and an enterprise value of $2.56 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 6.87 and a forward price-to-earnings of 15.16. Its estimated growth rate for this year is -27%, and for next year it's pegged at -37.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $110.90 million and its total debt is $437.60 million.
The chairman of the board and a director just
bought 100,000 shares, or $1.98 million worth of stock, at $19.58 per share.
From a technical perspective, KRO 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 three months, with shares soaring from its low of $12.53 to its recent high of $20.52 a share. During that uptrend, shares of KRO have been consistently making higher lows and higher highs, which is bullish technical price action. That said, the stock has started to pullback of its recent high and move within range of its 50-day moving average at $17.61 a share.
If you're bullish on KRO, then I would look for long-biased trades if this stock trades back down toward its 50-day at $17.61 or its 200-day at $16.90 a share and then holds around those levels. If KRO trades back down toward those key moving averages and finds buying interest, then traders can look for this stock to break out above some near-term overhead resistance levels at $20.15 to $20.52 with high volume.
Look for a sustained move or close above those breakout levels with volume that hits near or above its three-month average action of 698,618 shares. Some possible upside targets off that breakout are $24 to $25 a share.