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 DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons.

They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price. ¿

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share. ¿

But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside. ¿

The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying. ¿

At the end of the day, it's institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity but twice as important to make sure the trend of the stock coincides with the insider buying. ¿

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at the stocks they are buying. Here are five of them.

eHealth

One insurance player that insiders are loading up on here is eHealth (EHTH) - Get eHealth, Inc. Report , which provides online health insurance services for individuals, families and small businesses in the U.S. Insiders are buying this stock into massive weakness, since shares have plunged by 66% over the last six months.

eHealth has a market cap of $190 million and an enterprise value of $114 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 191 and a forward price-to-earnings of 152. Its estimated growth rate for this year is -222.2%, and for next year it's pegged at 163.6%. This is a cash-rich company, since the total cash position on its balance sheet is $58.08 million and its total debt is zero.

A beneficial owner just bought 1 million shares, or about $20.30 million worth of stock, at $19.84 to $20.45 per share.

From a technical perspective, EHTH is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply from over $20 a share to its new 52-week low of $8.88 a share with heavy downside volume. Following that move, shares of EHTH have now started to bounce higher off that $8.88 low and it's beginning to trade into that gap-down-day zone with strong upside volume flows.

If you're bullish on EHTH, then I would look for long-biased trades as long as this stock is trending above Tuesday's intraday low of $10.04 or above that new 52-week low of $8.88 a share and then once it breaks out above Tuesday's intraday high of $11.04 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 368,075 shares. If that breakout triggers soon, then EHTH will set up to re-fill some of its previous gap-down-day zone from a few trading sessions ago that started just above $20 a share.

Worthington Industries

Another metals manufacturing player that insiders are active in here is Worthington Industries (WOR) - Get Worthington Industries, Inc. Report , which focuses on value-added steel processing and manufactured metal products in the U.S., Europe, Mexico, Canada and internationally. Insiders are buying this stock into major weakness, since shares have trended down by 38% over the last six months.

Worthington Industries has a market cap of $1.7 billion and an enterprise value of $2.3 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 12.3 and a forward price-to-earnings of 8.9. Its estimated growth rate for this year is 5.1%, and for next year it's pegged at 17.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $96.54 million and its total debt is $685.83 million. This stock currently sports a dividend yield of 2.8%.

TheStreet Recommends

A director just bought 40,000 shares, or about $978,000 worth of stock, at $24.47 per share. Another director also just bought 10,000 shares, or about $243,000 worth of stock, at $24.33 per share.

From a technical perspective, WOR is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $39.03 to its new 52-week low of $24.02 a share. During that downtrend, shares of WOR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of WOR have now started to rebound off that $24.02 low with strong upside volume flows.

If you're in the bull camp on WOR, then I would look for long-biased trades as long as this stock is trending above its new 52-week low of $24.02 a share and then once it breaks out above some near-term overhead resistance levels at $26 to $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 action of 398,108 shares. If that breakout triggers soon, then WOR will set up to re-test or possibly take out its next major overhead resistance levels at $30 to $31.30 a share, or even its 50-day moving average of $33.47 a share.

Five Prime Therapeutics

One clinical-stage biotechnology player that insiders are jumping into here is Five Prime Therapeutics (FPRX) - Get Five Prime Therapeutics, Inc. Report , which focuses on the discovery and development of protein therapeutics that block cancer and inflammatory disease processes. Insiders are buying this stock into incredible strength, since shares have exploded higher by 80% over the last six months.

Five Prime Therapeutics has a market cap of $557 million and an enterprise value of $409 million. This stock trades at a premium valuation, with a price-to-sales of 29.37 and a price-to-book of 5.69. Its estimated growth rate for this year is 76.7%, and for next year it's pegged at -16.4%. This is a cash-rich company, since the total cash position on its balance sheet is $129.98 million and its total debt is zero.

A director just bought 10,049, or about $262,000 worth of stock, at $25.76 per share.

From a technical perspective, FPRX 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 six months, with shares moving higher from its low of $10.50 a share to its recent high of $28.47 a share. During that uptrend, shares of FPRX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FPRX within range of triggering a near-term breakout trade.

If you're bullish on FPRX, then I would look for long-biased trades as long as this stock is trending above some key near-term support levels at $24.37 or $22 a share or its 50-day at $21.69 a share and then once it breaks out above some near-term overhead resistance levels at $27 to its all-time high of $28.47 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 264,487 shares. If that breakout develops soon, then FPRX will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40 a share.

OvaScience

One life sciences stock that insiders are in love with here is OvaScience (OVAS) , which is engaged in the discovery, development and commercialization of new treatments for infertility. Insiders are buying this stock into massive strength, since shares have exploded higher by 218% over the last three months.

OvaScience has a market cap of $1.18 billion and an enterprise value of $1.12 billion. This stock trades at a premium valuation, with a price-to-book of 17.39. Its estimated growth rate for this year is -8.9%, and for next year it's pegged at 4.1%. This is a cash-rich company, since the total cash position on its balance sheet is $72.17 million and its total debt is zero.

A director just bought 35,000 shares, or about $1.75 million worth of stock, at $50 per share.

From a technical perspective, OVAS is currently trending well above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong over the last six months, with shares moving higher from its low of $8.73 to its recent high of $52.94 a share. During that uptrend, shares of OVAS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of OVAS within range of triggering a near-term breakout trade above some key overhead resistance levels.

If you're bullish on OVAS, then I would look for long-biased trades as long as this stock is trending above some key near-term support levels at $45.87 to $42.81 a share and then once it breaks out above its all-time high at $52.94 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 372,921 shares. If that breakout kicks off soon, then OVAS will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65 a share, or even $70 a share.

CareDX

One final stock with some decent insider buying is CareDX (CDNA) - Get CareDx, Inc. Report , which develops, markets and delivers a diagnostic surveillance solution for heart transplant recipients to help clinicians make personalized treatment decisions throughout a transplant patients lifetime. Insiders are buying this stock into notable strength, since shares have traded sharply higher by 28% over the last three months.

CareDX has a market cap of $85 million and an enterprise value of $55 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 300. This is a cash-rich company, since the total cash position on its balance sheet is $39.05 million and its total debt is $12.81 million.

A beneficial owner just bought 122,319 shares, or about $864,000 worth of stock, at $6.88 per share. That same beneficial owner also just bought 39,109 shares, or about $251,000 worth of stock, at $6.43 per share.

From a technical perspective, CDNA is currently trending above its 50-day moving average, which is bullish. This stock has recently spiked higher back above its 50-day moving average of $7.06 a share. That spike is quickly pushing shares of CDNA within range of triggering a big breakout trade above some key near-term overhead resistance levels.

If you're bullish on CDNA, then I would look for long-biased trades as long as this stock is trending above some near-term support at $6.25 a share and then once it breaks out above some key near-term overhead resistance levels at $7.66 to $7.91 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 19,975 shares. If that breakout develops soon, then CDNA will set up to re-test or possibly take out its next major overhead resistance levels at $9 to around $10 a share.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned. 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.