WINDERMERE, Fla. ( 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, it could end up going nowhere. Also, I said "usually" above 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.

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At the end of the day, large institutional money managers running big mutual funds and hedge funds 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 monitor 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. Here's a look at several stocks whose insiders have been doing some big buying according to SEC filings.

Krispy Kreme Doughnuts

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One stock that's seen some huge insider buying is Krispy Kreme Doughnuts ( KKD), which operates as a branded retailer and wholesaler of doughnuts, complementary beverages and treats, and packaged sweets. Insiders are paying up to own stock here since shares of KKD are up over 34% so far in 2011.

This company has a current market cap of $633 million and an enterprise value of $643 million. The stock isn't cheap, trading at a trailing price-to-earnings of 51 and a forward price-to-earnings of 22. Krispy Kreme recently announced that it's taking steps to expand its menu to include healthier choices, in addition to its popular donuts. This move could provide a boost to earnings in the coming quarters since the current consumer trend is towards healthier foods.

A beneficial owner just bought 243,181 shares, or $2.4 million worth of stock, at $9.69 to $9.80 per share.

From a technical standpoint, shares of KKD recently ran into some big overhead resistance at around $10.08 a share. The stock has now traded below some short-term support at $9.40 a share. The next major support level sits at $8.73 a share, and if that level is broken, then look for a test of $8.11 to $8 a share, which is a major consolidation support zone.

If you're looking to buy this stock, I would wait to see if it trades down toward the 50-day moving average at around $8 a share. If that level can hold, then look to scoop up some shares with a tight stop just below that level in case KKD wants to fill a previous gap, which would take the stock back toward $6.30 a share.

It's worth noting that KKD has a reasonable short interest of 6.4% of the tradable float. The short-sellers might be back in control of the stock right now since the chart pattern of higher lows has been broken with the recent break below $9.40 a share.

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Energy Transfer Equity

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One name in the energy space where insiders have been snapping up lots of shares is Energy Transfer Equity ( ETE), which, through its direct and indirect investments in the limited partner and general partner interests in Energy Transfer Partners, engages in midstream, intrastate and interstate transportation of natural gas, as well as in storage of natural gas in the U.S. Insiders are buying into strength with ETE since shares are up over 14% so far in 2011.

Energy Transfer Equity has a market cap of $10 billion and an enterprise value of $19 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 60 and a forward price-to-earnings of 19. This is not a cash-rich company; it has$9.94 billion in debt on their balance sheet and just $145.67 million in cash.

A director just bought 50,000 shares, or $2.2 million worth of stock, at $44.95 per share. This same director recently participated in a private placement of 700,000 shares of ETE stock at $41.98, worth a whopping $29.39 million.

From a technical standpoint, ETE recently broke out above $46 a share and ended up hitting a high of $47.34 before pulling back below the breakout point. Now the stock is trading right around $45 a share, just a few points above the 50-day moving average of $43 a share.

If you're looking to buy this stock, I would wait for it to breakout above $47.34 and then load up as long as volume is strong. Look for volume that's well above the three-month average action of 443,000 shares. Another strategy is to buy this stock on any weakness that takes shares towards $43 to $42 a share. Use a tight mental stop in case the stock wants to trend lower.

Energy Transfer Equity was recently highlighted in " 7 Dividend Stocks Rewarding Shareholders."

FutureFuel

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One renewable energy stock where insiders have been active in is FutureFuel ( FF), which engages in the manufacture and sale of specialty chemicals and biofuels in the United States and internationally. It operates in two segments: chemicals and biofuels. Insiders are still finding value in this stock after it has run-up of over 85% so far in 2011.

This company has a market cap of $500 million and an enterprise value of $369 million. FutureFuel is a cash-rich company, with over $131.38 million in cash on its balance sheet and zero debt.

A director just bought 49,047 shares, or $598,673 worth of stock, at $12.21 per share.

From a technical standpoint, this stock is currently trading just below its 50-day moving average of $12.75 a share. This stock recently failed to breakout above $13.75 a share and traded down to a low of $11.81 a share. That $11.80 area has held so far and looks to be a major near-term support level.

If you're interested in buying this stock, I would wait until it moves back above the 50-day moving average on strong volume. Look for volume that's well above the three-month average action of 80,600 shares. I would add to any long positions if the stock stakes out $13.75 and then add again on a breakout above $13.99 a share.

KiOR

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Another renewable energy company where insiders are snapping up shares in is KiOR ( KIOR), a development stage company, focuses on operating as a renewable fuels company. Through its proprietary biomass-to-renewable fuel technology platform, it converts non-food biomass into hydrocarbon-based oil. This stock has done absolutely nothing so far in 2011, with shares up by just 0.3%.

KiOR has a market cap of $1.52 billion and an enterprise value of $1.51 billion. This stock isn't cheap, trading at a forward price-to-earnings of 30. This company has a decent cash position on its balance sheet, with $21.95 million in cash and $9.23 million in total debt, which comes out to $12.72 million in net cash.

A beneficial owner just bought 115,828 shares, or $1.7 million worth of stock, at $14.95 to $15.05 per share. This same insider also bought millions worth of KIOR stock in late June.

From a technical standpoint, this stock recently hit a high of $15.50 a share but has since pulled back towards its current price of $15 a share. The stock is still holding a pattern of higher lows, which is bullish as long as that pattern isn't broken.

The way I would play KIOR is to wait for a major breakout above $15.50 a share. If you see the stock take out that level to the upside on strong volume, then look to load up on this stock. Since KIOR is a recent IPO, a breakout above $15.50 will attract momentum investors who love to buy stocks that are printing new highs.

Kingold Jewelry

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One final stock that has seen some decent insider buying is Kingold Jewelry ( KGJI), which designs, manufactures and sells gold jewelry and Chinese ornaments in the People's Republic of China. Insiders are clearly finding some value here; the stock has dropped over 60% so far in 2011.

This company has a market cap of $81 million and an enterprise value of $76 million, and the stock trades at a very cheap trailing price-to-earnings of 3.79.

The CEO just bought 200,000 shares, or $312,900 worth of stock, at $1.43 to $1.60 per share. These stock purchases are part of a Rule 10b5-1 plan he entered into in early June to buy up to $500,000 worth of stock and then subsequently buy an additional $1 million worth of stock.

From a technical standpoint, this stock recently formed a perfect double-bottom chart pattern at $1.29 to $1.28 a share. Since hitting that bottom in late June, the stock has soared and hit a recent high of $1.70 a share.

If you want to buy this stock, I would wait until you see KGJI take out its 50-day moving average of $1.67 on strong volume. Look for volume that's well above the three-month average action of 171,800 shares. I would add to any long position aggressively if you see the stock take out $1.85 and then $2.11 a share. One could also buy the stock on weakness if it moves back towards some significant support at $1.40 a share.

To see more stocks with notable insider buying, including Aradigm ( ARDM), Nanosphere ( NSPH) and IVAX Diagnostics ( IVD), check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.