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 these stocks.

Health Insurance Innovations

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One health care player that insiders are active in here is Health Insurance Innovations (HIIQ) - Get Health Insurance Innovations, Inc. Class A Report, which operates as a developer, distributor and administrator of cloud-based individual health insurance plans and ancillary products in the U.S. Insiders are buying this stock into major weakness, since shares have fallen sharply by 40.8% over the last three months.

Health Insurance Innovations has a market cap of $36 million and an enterprise value of $27 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 14.9. Its estimated growth rate for the next quarter is 136.4%, and for next year it's pegged at 146.2%. This is a cash-rich company, since the total cash position on its balance sheet is $10.52 million and its total debt is zero.

A beneficial owner just bought 45,572 shares, or about $226,000 worth of stock, at $4.95 per share.

From a technical perspective, Health Insurance Innovations is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been trending sideways over the last two months, with shares moving between $4.58 on the downside and around $5.25 on the upside. Any high-volume move above the upper-end of its recent sideways trending chart pattern could trigger a big breakout trade for shares of Health Insurance Innovations.

If you're bullish on Health Insurance Innovations, then I would look for long-biased trades as long as this stock is trending above its recent low of $4.57 a share and then once it breaks out above some near-term overhead resistance levels at $5.12 to $5.25 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 action of 78,237 shares. If that breakout triggers soon, then shares of Health Insurance Innovations will set up to re-test or possibly take out its next major overhead resistance levels at $5.45 to $6 a share, or even $6.25 a share.

Zoetis

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Another health care player that insiders are loading up on a huge amount of stock in here is Zoetis (ZTS) - Get Zoetis, Inc. (ZTS) Report, which engages in the discovery, development, manufacture and commercialization of animal health medicines and vaccines for livestock and companion animals worldwide. Insiders are buying this stock into notable strength, since shares have risen by 10% over the last six months.

Zoetis has a market cap of $23.9 billion and an enterprise value of $27.3 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 40.5 and a forward price-to-earnings of 25. Its estimated growth rate for this year is 5.1%, and for next year it's pegged at 15.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $559 million and its total debt is $3.64 billion.

A director just bought 1,540,713 shares, or about $74.29 million worth of stock, at $48.22 per share.

From a technical perspective, Zoetis is currently trending below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock spiked off its recent low on Tuesday of $47.04 a share to close around $47.80 a share with strong upside volume flows. That spike is now quickly pushing shares of Zoetis within range of triggering a major near-term breakout trade above some key overhead resistance levels.

If you're in the bull camp on Zoetis, then I would look for long-biased trades as long as this stock is trending above that recent low of $47.04 a share and then once it breaks out above some near-term overhead resistance levels at $49.04 to its 20-day moving average of $49.52 a share with volume that hits near or above its three-month average action of 3.39 million shares. If that breakout hits soon, then shares of Zoetis will set up to re-test or possibly take out its next major overhead resistance levels at $54 to its 52-week high of $55.38 a share.

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FuelCell Energy

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One alternative energy player that insiders are active in here is FuelCell Energy (FCEL) - Get FuelCell Energy, Inc. Report, which designs, manufactures, sells, installs, operates and services stationary fuel cell power plants for distributed power generation. Insiders are buying this stock into major weakness, since shares have dropped sharply by 36% over the last six months.

FuelCell Energy has a market cap of $280 million and an enterprise value of $257 million. This stock trades at a fair valuation, with a price-to-sales of 1.49 and a price-to-book of 2.54. Its estimated growth rate for this year is 23.1%, and for next year it's pegged at 60%. This is a cash-rich company, since the total cash position on its balance sheet is $82.99 million and its total debt is $27.20 million.

The chairman of the board just bought 100,000 shares, or about $101,000 worth of stock, at $1.01 per share.

From a technical perspective, FuelCell Energy is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly over the last five months, with shares moving lower from its high of $1.45 a share to its recent low of 86 cents per share. During that move, shares of FuelCell Energy have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has started to attempt to carve out a near-term bottom at 86 to 87 cents per share.

If you're bullish on FuelCell Energy, then I would look for long-biased trades as long as this stock is trending above 86 cents per share and then once it breaks out above some near-term overhead resistance at around 95 to 96 cents per 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 3.08 million shares. If that breakout kicks off soon, then shares of FuelCell Energy will set up to re-test or possibly take out its next major overhead resistance levels at its 20-day moving average of $1.01 to $1.06 a share, or even its 50-day moving average of $1.14 a share.

Tiptree Financial

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One equity real estate investment trust that insiders are jumping into here is Tiptree Financial (TIPT) - Get Tiptree Inc. Report, which primarily invests in health care facilities, including assisted-living, independent-living, memory care, skilled nursing and other health care and seniors-related real estate assets. Insiders are buying this stock into notable weakness, since shares have fallen by 11.7% over the last six months.

Tiptree Financial has a market cap of $218 million and an enterprise value of $2.3 billion. This stock trades at a cheap valuation, with a price-to-sales of 1.41 and a price-to-book of 0.78. This is not a cash-rich company, since the total cash position on its balance sheet is $88.36 million and its total debt is $2.24 billion. This stock currently sports a dividend yield of 1.4%.

The chairman of the board just bought 47,520 shares, or about $358,000 worth of stock, at $7.33 per share.

From a technical perspective, Tiptree Financial is currently trending just above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending over the last five months, with shares moving higher from its low of $6.06 a share to its recent high of $8.19 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action.

If you're bullish on Tiptree Financial, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $6.79 or around $6.40 a share and then once it breaks out above its 20-day at $7.09 and its 200-day at $7.16 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 83,502 shares. If that breakout gets underway soon, then shares of Tiptree Financial will set up to re-test or possibly take out its next major overhead resistance levels at $7.70 to $8.19 a share, or even its 52-week high of $8.50 a share.

U.S. Silica

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One final stock with some decent insider buying is U.S. Silica (SLCA) - Get U.S. Silica Holdings, Inc. Report, which produces and sells commercial silica in the U.S. Insiders are buying this stock into large weakness, since shares have plunged by 28.2% over the last three months.

U.S. Silica has a market cap of $1.4 billion and an enterprise value of $1.6 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 12.1 and a forward price-to-earnings of 21.2. Its estimated growth rate for this year is -71.1%, and for next year it's pegged at 75.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $327.81 million and its total debt is $500.95 million. This stock currently sports a dividend yield of 1.8%.

A director just bought 10,000 shares, or about $287,000 worth of stock, at $28.75 per share. From a technical perspective, U.S. Silica is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares moving lower from its high of $40.02 to its recent low of $24.19 a share. During that downtrend, shares of U.S. Silica has been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock bounced on Tuesday right above some past support at around $24 a share with strong upside volume flows.

If you're bullish on U.S. Silica, then I would look for long-biased trades as long as this stock is trending above Tuesday's low of $24.19 or above some past support at $23.15 a share and then once it breaks out above some near-term overhead resistance levels at $27 to $27.29 a share and above $28 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 1.84 million shares. If that breakout develops soon, then shares of U.S. Silica will set up to re-test or possibly take out its next major overhead resistance levels at its 20-day of $29.68 to $29.72 a share, or even $31 to its 50-day at $32.10 a share.

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