Insiders are jumping into Quad Graphics ( QUAD), a printer of magazines, catalogs and other commercial products. Insiders clearly see tremendous value here since this stock is off by over 60% this year. Quad Graphics has a market cap of $762.43 million and an enterprise value of $2.43 billion. This stock trades at a very cheap valuation, with a forward price-to-earnings of 7.46. Its estimated growth rate for this year is 1.3%, and for next year it's pegged at -6.4%. This is far from a cash-rich company, since the total cash position on its balance sheet is $15.8 million and its total debt is $1.67 billion. The stock also sports a decent dividend yield of 4.7%, making it one of the top-yielding diversified services stocks. The CEO and chairman of the board just bought 61,900 shares, or $991,669 worth of stock, at $16.02 per share.
From a technical standpoint, QUAD is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock sold off hard from its November high of $20.87 to its recent low of $11.96 a share. After printing that low, the stock has rebounded huge to its current price of $16.27. That said, the stock is starting to fail right at its 50-day moving average of $16.72. If QUAD can't manage to trade back above that key level, then shares could be setting up to trend much lower again. If you're bullish on Quad Graphics, I would get long off any weakness that takes the stock back towards some near-term support at $13.09 to $12 a share. If we don't get that weakness and QUAD can trade back above its 50-day, then I would buy once it clears $17.06 on high volume. Look for volume that's tracking in close to or above its three-month average action of 248.731 shares. Use a mental stop at just below $12 if you buy off weakness, and use a mental stop a few percentage points below $17.06 if you get long off strength.