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TheStreet Open House

5 Stocks With Big Insider Buying

Stocks in this article: SIGMOPKTHCAYRACFC


Aircastle

One commercial leasing player that insiders are active in here is Aircastle  (AYR), which acquires, leases and sells high-utility commercial jet aircraft to passenger and cargo airlines throughout the world. Insiders are buying this stock into notable strength, since shares are up sharply by 52% in 2013.

Aircastle has a market cap of $1.5 billion and an enterprise value of $4.8 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 124.68. This is not a cash-rich company, since the total cash position on its balance sheet is $238.15 million and its total debt is $3.48 billion. This stock currently sports a dividend yield of 4.2%.

A director just bought 30,000 shares, or about $563,000 worth of stock, at $18.79 per share.

From a technical perspective, AYR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $15.84 to its recent high of $19.50 a share. During that uptrend, shares of AYR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AYR within range of triggering a big breakout trade.

If you're bullish on AYR, then I would look for long-biased trades as long as this stock is trending above its 50-day at $18.67 or above more support near $18, and then once it breaks out above its 52-week high at $19.50 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 volume of 430,032 shares. If that breakout hits soon, then AYR will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30 a share.

Atlantic Coast Financial

One final name with some big insider buying is Atlantic Coast Financial  (ACFC), which operates as the bank holding company for Atlantic Coast Bank that provides various banking services to individual and business customers primarily in northeastern Florida and southeastern Georgia. Insiders are buying this stock into monster strength, since shares are up 101% in 2013.

Atlantic Coast Financial has a market cap of $10.31 million and an enterprise value of $130.76 million. This stock trades at a cheap valuation, with a price-to-sales of 0.53 and a price-to-book of 0.35. This is not a cash-rich company, since the total cash position on its balance sheet is $82.58 million and its total debt is $202.80 million.

A director just bought 1,289,077 shares, or about $4.83 million worth of stock, at $3.75 per share.

From a technical perspective, ACFC is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong over the last month, with shares moving higher from its low of $3 to its recent high of $4.19 a share. During that uptrend, shares of ACFC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ACFC within range of triggering a big breakout trade.

If you're bullish on ACFC, then look for long-biased trades as long as this stock is trending above its 50-day at $3.79 or above more support at $3.40, and then once it breaks out above some near-term overhead resistance levels at $4.19 to its 200-day at $4.42 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 44,167 shares. If that breakout triggers soon, then ACFC will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $5.81 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 Delafield, Wis.

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Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
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