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Eagle Bancorp

One final stock in the banking complex where insiders are buying up some stock in is Eagle Bancorp ( EGBN). This bank offers full commercial banking services to its business and professional clients as well as complete consumer banking services to individuals living and/or working in the service area.

Eagle Bancorp has a market cap of $289.52 million and an enterprise value of -$262.15. This stock trades at a cheap valuation, since their trailing price-to-earnings is 14.12 and their forward price-to-earnings is just 10.54. Their estimated growth rate for this year is 45.5% and for next year it's pegged at 23.3%. This is a cash-rich company, since the total cash position on their balance sheet is $746.85 million and their total debt is $196.97 million.

A director bought 28,677 shares, or around 405,000 worth of stock, at $14.12 per share.

From a technical standpoint, EGBN is currently trading above both its 50-day and 200-day moving average, which is bullish. This stock formed a perfect double bottom in September and October at $11.10 to $11.26 a share. Since hitting that bottom, the stock has been uptrending strong and is now nearing a big breakout.

If you're bullish on EGBN, you could be a buyer off any weakness and anticipate the breakout. I would use a mental stop just below the 50-day moving average of $13.96 if you get long off weakness. You could also buy off strength and get long once EGBN breaks out above $14.94 to $15.14 with volume. Look for volume that's tracking in close to or above its three-month average action of 65,851 shares.

To see more stocks with notable insider buying like Enstar Group ( ESGR), First Acceptance ( FAC) and Inergy Midstream ( NRGM), 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 and maintains the website, 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.

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