This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Stocks Insiders Love Right Now

Stocks in this article: SWI SREV MO CYCC EOX


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

Get Adobe Flash player

One technology player that insiders are active in here is SolarWinds ( SWI), which designs, develops, markets, sells and supports enterprise-class IT infrastructure management software to IT professionals. Insiders are buying this stock into weakness, since shares are off by 26% over the last three months.

>>5 Rocket Stocks to Buy as Stocks Bounce

SolarWinds has a market cap of $3.1 billion and an enterprise value of $2.8 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 36.69 and a forward price-to-earnings of 22.49. Its estimated growth rate for this year is 15.4%, and for next year it's pegged at 18.5%. This is a cash-rich company, since the total cash position on its balance sheet is $265.76 million and its total debt is zero.

A director just bought 5,000 shares, or about $ 202,000 worth of stock, at $40.59 per share.

From a technical perspective, SWI is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares falling from its high of $61.52 to its recent low of $39.95 a share. During that downtrend, shares of SWI have been mostly making lower highs and lower lows, which is bearish technical price action. That said, SWI has started to bounce off that $39.95 low and off oversold levels, since its current relative strength index reading is 34.41.

If you're bullish on SWI, then I would look for long-biased trades as long as this stock is trending above its recent low of $39.95, and then once it breaks out above some near-term overhead resistance at $42.39 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 922,790 shares. If we get that move soon, then SWI could bounce back towards its next significant overhead resistance levels at $46 to $48.62 a share.

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!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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