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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Stocks With Big Insider Buying

Stocks in this article: VRXSMLPSNTAWYDGIT

Valeant Pharmaceuticals

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

Get Adobe Flash player

One health care player that insiders are buying up a huge amount of stock in here is Valeant Pharmaceuticals ( VRX), which develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. Insiders are buying this stock into strength, since shares are up sharply by 42% so far in 2013.

Valeant Pharmaceuticals has a market cap of $26 billion and an enterprise value of $36 billion. This stock trades at a fair valuation, with a price-to-sales of 6.94 and a price-to-book of 7.22. This is not a cash-rich company, since the total cash position on its balance sheet is $413.74 million and its total debt is a whopping $10.62 billion.

>>5 Short-Squeeze Stocks Primed to Pop

A director just bought 1.35 million shares, or about $114.99 million worth of stock, at $85 per share.

From a technical perspective, VRX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a double bottom chart pattern at $81.94 to $82 a share. Following that bottom, shares of VRX are now starting to trend higher and move within range of triggering a near-term breakout trade.

If you're bullish on VRX, then I would look for long-biased trades as long as this stock is trending above $81.94 and then once it breaks out above some near-term overhead resistance at $88.67 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 1.91 million shares. If that breakout triggers soon, then VRX will set up to re-test or possibly take out its 52-week high at $96.25 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!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

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