This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Insiders Are Scooping Up

Stocks in this article: HLF JPM ADNC HBAN RFP

Herbalife

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One global network marketing player that insiders are buying a huge amount of stock in here is Herbalife ( HLF), which sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. Insiders are buying this stock into notable strength, since shares are up 30% so far in 2013.

Herbalife has a market cap of $4.4 billion and an enterprise value of $4.4 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 10.09 and a forward price-to-earnings of 7.90. Its estimated growth rate for this year is 17.8%, and for next year it's pegged at 14.5%. This is not a cash-rich company, since the total cash position on its balance sheet is $722.47 million and its total debt is $976.52 million. This stock sports a dividend yield of 2.9%.

>>3 Health Care Stocks Under $10 to Watch

Billionaire hedge fund manager Carl Icahn, who is also a beneficial owner, just bought 611,354 shares, or $24.97 million worth of stock, at $40.85 per share. This purchase by Icahn raised his stake in Herbalife to 16.48% from 15.5%.

From a technical perspective, HLF is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $34.72 to its recent high of $44.60 a share. During that move, shares of HLF have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HLF within range of triggering a major breakout trade.

If you're bullish on HLF, then I would look for long-biased trades as long as this stock is trending above some key near-term support at $40 and then once it breaks out above both its 200-day at $43.92 and some more key resistance levels at $44.60 to $45.70 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 3.82 million shares. If we get that breakout, then HLF will set up to re-test or possibly take out its next major overhead resistance levels at $47.16 to $47.45 a share. Any high-volume move above those levels will then put $53.50 to $56.50 into range for shares of HLF.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs