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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Insiders Love Right Now

Stocks in this article: NATR QTM ESRX AKAM MDRX

Akamai Technologies

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One more stock to consider is Akamai Technologies (AKAM), which provides services for accelerating and improving the delivery of content and applications over the Internet, from live and on-demand streaming videos to conventional content on Web pages to tools that help people transact business. Insiders are buying this stock into weakness, since shares are off by 13% so far in 2013.

Akamai Technologies has a market cap of $6.3 billion and an enterprise value of $5.7 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 31.62 and a forward price-to-earnings of 16.10. Its estimated growth rate for this year is 6.6%, and for next year it's pegged at 14%. This is a cash-rich company, since the total cash position on its balance sheet is $437.32 million and its total debt is zero.

The CEO just bought 30,000 shares, or about $1.04 million worth of stock, at $34.75 per share.

From a technical perspective, AKAM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last two months, with shares falling from its high of $39 to its recent low of $34.26 a share. During that downtrend, shares of AKAM have been mostly making lower highs and lower lows, which is bearish technical price action. That said, AKAM has started to rebound off that $34.26 low and is now quickly moving within range of triggering a near-term breakout trade.

If you're bullish on AKAM, then look for long-biased as long as this stock is trending above some near-term support at $34.26, and then once it breaks out above some near-term overhead resistance at $35 and above its 200-day moving average at $36.42 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 3.87 million shares. If that breakout hits soon, then AKAM will set up to re-test or possibly take out its 50-day moving average of $38.03 a share. Any high-volume move above its 50-day will then put $39 to $40 into range for shares of AKAM.

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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Follow Stockpickr on Twitter and become a fan on Facebook.

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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