From a technical perspective, AVAV is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last month after gapping down big from $22, with shares moving lower from its gap down day high of $20 to its recent low of $17.69 a share. During that move, shares of AVAV have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of AVAV have started to bounce off that $17.69 low and now it's quickly moving within range of triggering a near-term breakout trade.
If you're bullish on AVAV, then look for long-biased trades as long as this stock is trending above $18, and then once it breaks out above some near-term overhead resistance at $18.87 a share with high volume. Look for a sustained move or close above that level volume that hits near or above its three-month average action of 312,359 shares. If that breakout triggers soon, then AVAV will set up to re-test or possibly take out its next major overhead resistance levels at $19.65 to $20 a share. Any high-volume move above $20 will then give AVAV a chance to re-fill some of its previous gap down zone from March that started at $22.
BlueLinxAnother stock that insiders are buying here is BlueLinx (BXC), a distributor of building products including lumber, structural panels, hardwood plywood, roofing, insulation, metal products, vinyl siding and particleboard. Insiders are buying this stock into strength, since shares are up 35% during the last six months. BlueLinx has a market cap of $175 million and an enterprise value $563 million. This stock trades at a premium valuation, with a forward price-to-earnings of 138. Its estimated growth rate for this year is 17.6%, and for next year it's pegged at 107.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $5.19 million and its total debt is $412.78 million. A beneficial owner just bought 13.5 million shares, or about $23.60 million worth of stock, at $1.75 per share.
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