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Another stock that insiders are loading up on here is
Genomic Health(GHDX - Get Report), which is engaged in the development and commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer, allowing physicians and patients to make individualized treatment decisions. Insiders are buying this stock into weakness, since shares are off by 16.5% in the last six months.
Genomic Health has a market cap of $876 million and an enterprise value of $779 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 110.19 and a forward price-to-earnings of 98.79. Its estimated growth rate for this year is -84.6%, and for next year it's pegged at 625%. This is a cash-rich company, since the total cash position on its balance sheet is $99.07 million and its total debt is zero.
A director and beneficial owner just
bought 116,360 shares, or about $3.27 million worth of stock, at $27.96 to $28.23 per share.
From a technical perspective, GHDX is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been trading inside of a consolidation pattern for the last month, with shares moving between $27.56 on the downside and $30.18 on the upside. A high-volume move above the upper-end of that recent sideways chart pattern will trigger a near-term breakout trade for shares of GHDX.
If you're in the bull camp on GHDX, then I would look for long-biased as long as it's trending above $27.56 or $26.78, and then once it manages to break out above some near-term overhead resistance levels at $29.54 to $30.18 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 222,634 shares. If that breakout triggers soon, then GHDX will set up to re-fill some of its previous gap down zone from last November that started near $32 a share. Any high-volume move above $33 will then put $35 to $36 into range for shares of GHDX.