5 Stocks Insiders Are Snapping Up

Zygo

One more stock to consider with some large insider buying is Zygo (ZIGO), which designs, develops and manufactures measurement solutions to improve its customers' manufacturing yields, as well as top-tier optical sub-systems and components for original equipment manufacturers and end-user applications. Insiders are buying this stock into modest strength, since shares are higher by 6.2% in the last three months.

Zygo has a market cap of $297 million and an enterprise value of $186 million. This stock trades at a cheap valuation, with a trailing price-to-earnings of 8.85. This is a cash-rich company, since the total cash position on its balance sheet is $77.35 million and its total debt is zero.

A beneficial owner just bought 250,000 shares, or $3.65 million worth of stock, at $14.60 per share.

From a technical perspective, ZIGO is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock recently spiked back above its 50-day at $15.55 a share with volume and it's now quickly moving within range of triggering a major breakout trade.

If you're bullish on ZIGO, then look for long-biased as long as it's trending above its 50-day at $15.55 and then once it breaks out above some near-term overhead resistance levels at $16.19 to its 200-day at $16.85 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 38,498 shares. If that breakout hits soon, then ZIGO will set up to re-test or possibly take out its next major overhead resistance levels at $19 to $20 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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