One reinsurance player that insiders are loading up on here is
(AXS - Get Report), which provides a range of insurance and reinsurance products to insured's and reinsured worldwide operations with main locations in Bermuda, the U.S. and Europe. Insiders are buying this stock into decent strength, since shares are up 25% so far in 2013.
AXIS Capital has a market cap of $4.9 billion and an enterprise value of $5.2 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 8.94 and a forward price-to-earnings of 9.27. Its estimated growth rate for this year is 31.1%, and for next year it's pegged at 4.5%. This barely a cash-rich company, since the total cash position on its balance sheet is $1.06 billion and its total debt is $995.55 million. This stock currently sports a dividend yield of 2.4%.
The CEO just
bought 176,000 shares, or about $7.47 million worth of stock, at $47.47 per share.
From a technical perspective, AXS is currently trending below its 50-day moving average and above its 200-day moving averages, which is neutral trendwise. This stock recently pulled back sharply from its July high of $48.39 a share to its recent low of $41.87 a share. Following that pullback, shares of AXS have started to find some buying interest right above its 200-day moving average of $41.44 a share. That move is starting to push shares of AXS within range of triggering a near-term breakout trade.
If you're bullish on AXS, then look for long-biased trades as long as this stock is trending above its 200-day at $41.44, and then once it breaks out above some near-term overhead resistance at $43.45 a share to its 50-day at $44.27 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 volume of 856,062 shares. If that breakout triggers soon, then AXS will set up to re-test or possibly take out its next major overhead resistance levels at $46.21 to its 52-week high at $48.39 a share.
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