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TheStreet Open House

5 Stocks With Major Insider Buying

>>4 Reasons to Buy Stocks in 2013


One stock that insiders are buying here is Abiomed (ABMD), a provider of mechanical circulatory support devices. Insiders are buying this stock into strength, since shares are up 16% so far in 2013.

Abiomed has a market cap of $594 million and an enterprise value of $484 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 48.04 and a forward price-to-earnings of 34.15. Its estimated growth rate for this year is 750%, and for next year it's pegged at 35.3%. This is a cash-rich company, since the total cash position on its balance sheet is $85.74 million and its total debt is zero.

A director just bought 100,000 shares, or about $1.49 million worth of stock, at $14.70 to $15.20 per share.

From a technical perspective, ABMD is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last month and change, with shares soaring from its low of $11.96 to its intraday high of $16.12 a share. During that uptrend, shares of ABMD have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ABMD within range of triggering a major breakout trade.

If you're bullish on ABMD, then I would look for long-biased trades as long as it's trending above its 50-day at $13.60, and then once it manages to break out above its gap down day high from last October at around $16 a share with high volume. Look for a sustained move or close above $16 a share with volume that hits near or above its three-month average action of 897,742 shares. If that breakout hits, then ABMD will set up to re-fill some of its previous gap down zone that started at $20 a share.

Calamos Asset Management

Another stock that insiders are loading up on here is Calamos Asset Management (CLMS), which provides investment advisory services to individuals and institutional investors through open-end funds, closed-end funds, separate accounts, offshore funds and partnerships. Insiders are buying this stock into decent strength, since shares are up 13% in the last three months.

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