One industrial goods player that insiders are jumping into here is Ameresco
(AMRC - Get Report), which provides energy efficiency solutions for facilities in the U.S., Canada and Europe. Insiders are buying this stock into notable weakness, since shares are down by 19% so far in 2014.
Ameresco has a market cap of $355 million and an enterprise value of $443 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 154 and a forward price-to-earnings of 27.50. Its estimated growth rate for this year is 260%, and for next year it's pegged at 55.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $17.17 million and its total debt is $116.20 million.
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The CEO just bought 65,470 shares, or about $491,000 worth of stock, at $7.50 per share.
That same CEO also just bought 166,130 shares, or about $1.28 million worth of stock, at $7.75 per share.
From a technical perspective, AMRC is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply from around $9.75 to $8 a share with heavy downside volume. This stock has continued to trend lower following that gap with shares hitting a recent low of $7.41 a share. That move has pushed shares of AMRC into oversold territory, since its current relative strength index reading is 27.27. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from.
If you're bullish on AMRC, then I would look for long-biased trades as long as this stock is trending above its recent low of $7.41 and then once breaks out above some near-term overhead resistance levels at $7.88 to $8.25 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 126,932 shares. If that breakout gets underway soon, then AMRC will set up to re-fill some of its previous gap-down-day zone that started at $9.75 a share.
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