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One more stock with some big insider buying is independent exploration and production player
Emerald Oil (
EOX), which mainly develops operated wells in the Williston Basin in North Dakota and Montana. Insiders are buying this stock into strength, since shares are up by 22% so far in 2013.
Emerald Oil has a market cap of $167 million and an enterprise value of $140 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 15.30. Its estimated growth rate for this year is 68.4%, and for next year it's pegged at 800%. This is a cash-rich company, since the total cash position on its balance sheet is $35.79 million and its total debt is $15.18 million. After you back out the debt, Emerald has $20.61 million of total cash on its balance sheet.
A beneficial owner just
bought 2,785,600 shares, or about $16.35 million worth of stock, at $5.87 per share.
From a technical perspective, EOX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways for the last month two months and change, with shares moving between $7.18 on the upside and $5.81 on the downside. A high-volume move above the upper-end of its recent range could trigger a major breakout trade for shares of EOX.
If you're bullish on EOX, then look for long-biased trades as long as this stock is trending above its 200-day at $6.27 or above more support at $5.89, and then once it breaks out above some near-term overhead resistance levels at $7.18 to $7.49 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 324,632 shares. If that breakout triggers soon, then EOX will set up to re-test or possibly take out its next major overhead resistance levels at $9.66 to $11 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 Madison, Wis.