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Another stock whose insiders are doing some notable buying is 8x8 ( EGHT), which develops and markets telecommunications services for IP, telephony and video applications, as well as Web-based conferencing and unified communications services, managed hosting and cloud-based computing services. Insiders are paying up here to own shares of 8x8 since the stock is up over 65% so far in 2011.

8x8 has a market cap of $251.65 and an enterprise value of $274.39 million. This stock trades at a rich valuation; its trailing price-to-earnings is 43.89, and its forward price-to-earnings is 20.79. Their estimated growth rate for this year is 9.1%, and for next year it's pegged at 58.3%. This is a cash-rich company, with a total cash position on its balance sheet of $19.1 million and total debt of zero.

>>5 Beaten-Down Tech Stocks Poised to Rebound

A director just bought 41,480 shares, or $153,700 worth of stock, at $3.71 per share.

From a technical standpoint, this stock is currently trading above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been making lower highs since it hit $4.95 in September. Shares of EGHT also just failed near the 50-day moving average of $4.19. The stock now looks like it could trade down and re-test some previous support zones near its 200-day moving average of $3.56.

If you're bullish on this name, I would look to buy it off weakness near the 200-day and near the previous support zones at $3.55 to$3.58 a share. I would simply use a tight mental stop that's a few percentage points below those levels, in case the stock doesn't hold support. I would then add to any long position if EGHT trades back above some near-term overhead resistance at $4.25 on heavy volume. Look for volume that's tracking in close to or above its three-month average action of 1.03 million shares.

I also featured 8x8 in " 5 Stocks Set to Soar on Bullish Earnings."

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