SandRidge Energy

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Insiders are doing some active buying in SandRidge Energy ( SD), which, together with its subsidiaries, operates as an independent natural gas and oil company in the U.S. Insiders are buying into some slight weakness here since the stock is off by around 4% so far in 2012.

SandRidge Energy has a market cap of $3.12 billion and an enterprise value of $5.81 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 60.31 and a forward price-to-earnings of 19.60. Its estimated growth rate for this year is 2,300%, and for next year it's pegged at 66.7%. This is far from a cash-rich company, since the total cash position on its balance sheet is $207.96 million and its total debt is a whopping $2.82 billion.

A director just bought 50,000 shares, or about $386,000 worth of stock, at $7.70 to $7.76 per share.

From a technical perspective, SD is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been trading range-bound for the past six months, between $6.20 on the downside and around $9 on the upside. The stock recently broke back below both its 50-day and 200-day moving averages with high volume, which is bearish price action.

If you're bullish on SD, I would only look for long biased trades once this stock find some buying interest near its previous support levels at around $7.50 to $6.20 a share. Let SD move sideways for a bit near one of those support levels before just jumping in on the long side. The trend at the moment is down, so let buyers show their hand before picking up shares.

SandRidge, one of BP Capital's holdings, shows up on a list of Natural Gas Stock Trades.

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