Insiders Love Bioverativ, Juno Therapeutics and More - TheStreet

Company insiders will sell their own stock for a variety of different reasons. They might need cash for a fancy new car, a private market investment opportunity or simply for diversification purposes.

Insiders, however, usually buy their own shares for one reason only: They think the stock is undervalued with tremendous upside.

Recently, a number of companies' corporate insiders have been loading up on stock. These insiders see value, which warrants a closer look at these names.

Bioverativ

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One biotechnology player that insiders are snapping up a huge amount of stock in is Bioverativ (BIVV) , which focuses on the research, discovery, development, and commercialization of therapies for the treatment of hemophilia and other blood disorders.

Bioverativ has a market cap of $5.8 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 16.8. Its estimated growth rate for this year 27.8%, and for next year it's pegged at 17%. This is a cash-rich company, since its total cash position is $358.70 million and its total debt is zero.

A director just bought 920,000 shares, or $51.30 million worth of stock, at $54.16 to $57.21 per share.

If you're bullish on Bioverativ, then I would look for long-biased trades as long as this stock is trending above key support at $51.06 and then once it breaks out above resistance at $57.83 to its all-time high of $59.50 with volume near or above its three-month average of 1.37 million shares. Some possible upside targets off that breakout are $65 to $70, or even $75 a share.

Juno Therapeutics

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Another biopharmaceutical player that insiders are active in here is Juno Therapeutics (JUNO) , which engages in developing cell-based cancer immunotherapies.

Juno Therapeutics has a market cap of $2.4 billion. This stock trades at a fair valuation, with a price-to-book of 2.34. Its estimated growth rate for this year is -14.7%, and for next year it's pegged at -5.9%. This is a cash-rich company, since its total cash position is $722.18 million and its total debt is zero.

A director just bought 20,000 shares, or $495,000 worth of stock, at $24.37 per share.

If you're bullish on Juno Therapeutics, I would look for long-biased trades if this stock is trending above key support around $19.62 and then once it breaks out above its 200-day at $24.56 to $26.50 with volume near or above its three-month average of 1.61 million shares. If that breakout triggers soon, then this stock will set up to re-fill some of its previous gap-down-day zone from last November that started at $32 a share.

Kinder Morgan

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One oil and gas pipeline player insiders are jumping into here is Kinder Morgan (KMI) - Get Report , which operates as an energy infrastructure company in North America.

Kinder Morgan has a market cap of $41.7 billion. This stock trades at a fair valuation, with a forward price-to-earnings of 24.59. Its estimated growth rate for this year 1.5%, and for next year it's pegged at 13.4%. This is not a cash-rich company, since its total cash position is $482 million and its total debt is $39.48 billion.

A director just bought 500,000 shares, or $9.28 million worth of stock, at $18.58 per share.

If you're in the bull camp on Kinder Morgan, I would look for long-biased trades if this stock is trending above its 52-week low of $17.07 and once it breaks out above resistance at $19 with volume near or above its three-month average of 11.60 million shares. Some possible upside targets off that breakout are its 20-day at $19.65 or its 50-day at $20.49, or even $21 to $22 a share.

Radius Health

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One biopharmaceutical player that insiders are jumping into here is Radius Health (RDUS) - Get Report , which develops and sells therapeutics in the areas of osteoporosis, oncology, and endocrine diseases primarily in the U.S.

Radius Health has a market cap of $1.5 billion. This stock trades at a fair valuation, with a price-to-book of 5.70. Its estimated growth rate for this year is -4%, and for next year it's pegged at 18.4%. This is a cash-rich company, since its total cash position is $282.11 million and its total debt is zero.

A beneficial owner just bought 40,000 shares, or $1.45 million worth of stock, at $36.25 per share.

If you're bullish on Radius Health, I would look for long-biased trades if this stock is trending above key support around $32 and then once it breaks out above both its 20-day at $35.55 to its 50-day at $36.71 with volume near or above its three-month average of 1.10 million shares. Some possible upside targets off that breakout are $39 to $42, or even its 200-day moving average of $44.93 a share.

PRA Group

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My final stock with some decent insider buying is services player PRA Group (PRAA) - Get Report , which is a financial and business services company with operations in the Americas and Europe.

PRA Group has a market cap of $1.61 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings 12.8. Its estimated growth rate for this year is 5.1%, and for next year it's pegged at 32.2%. This is not a cash-rich company, since its total cash position is $82.11 million and its total debt is $1.71 billion.

A director just bought 142,000 shares, or $4.90 million worth of stock, at $34.42 to $35.03 per share.

If you're bullish on PRA Group, I would look for long-biased trades if this stock is trending above key support at $32.70 and then once it breaks out above some near-term resistance at $36.55 to $37.95 with volume near or above its three-month average of 516,671 shares. Some possible upside targets off that breakout are $42 to $43 a share.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.