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5 Stocks With Big Insider Buying

Kinder Morgan

One energy player that insiders are buying up a huge amount of stock in here is Kinder Morgan (KMI - Get Report), which owns interests in an energy transportation and storage company. Insiders are buying this stock into modest strength, since shares are up 2.4% so far in 2013.

Kinder Morgan has a market cap of $37.5 billion and an enterprise value of $71 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 37.94 and a forward price-to-earnings of 23.03. Its estimated growth rate for this year is 153.1%, and for next year it's pegged at 26.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.02 billion and its total debt is a whopping $35.60 billion. This stock currently sports a dividend yield of 4.2%.

The CEO and chairman of the board just bought 500,000 shares, or about $17.86 million worth of stock, at $35.74 a share.

From a technical perspective, KMI is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last two months, with shares moving lower from its July high of $40.03 a share to its recent low of $34.82 a share. During that downtrend, shares of KMI have been making mostly lower highs and lower lows, which is bearish technical price action.

If you're bullish on KMI, then I would look for long-biased trades as long as this stock is trending above its 200-day at $36.97, and then once takes out some near-term overhead resistance levels at 50-day at $37.80 a share to more resistance at $38.29 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 4.91 million shares. If we get that move soon, then KMI will set up to re-test or possibly take out its next major overhead resistance levels at $40.03 to $41.06 a share.

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SYM TRADE IT LAST %CHG
APA $67.34 -0.88%
AYR $25.00 3.20%
AXS $53.39 2.40%
KMI $42.69 0.09%
NAV $29.45 -0.84%

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