Republic Services

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Another stock that insiders are very active in here is Republic Services ( RSG), a provider of services in the domestic non-hazardous solid waste industry. Insiders are buying this stock into modest weakness here, since shares are down by around 10% in the last six months.

Republic Services has a market cap of $10.08 billion and an enterprise value of $17.05 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 15.18 and a forward price-to-earnings of 13.39. Its estimated growth rate for this year is -2.6%, and for next year it's pegged at 7.9%. This is far from a cash-rich company, since the total cash position on its balance sheet is $69.30 million and its total debt is a whopping $7.11 billion.

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A beneficial owner just bought 1.7 million shares, or around $46.35 million worth of stock, at $27.33 to $27.40 per share.

From a technical perspective, RSG is currently trading above below both its 50-day and 200-day moving averages, which is bearish. This stock has been stuck in a sideways trading pattern for the last two months and change, with shares moving between $28.97 on the upside and $27.03 on the downside. A move outside of that trading pattern will likely setup the next major trend for RSG.

If you're bullish on RSG, then I would look for long-biased trades once it manages to break out above some near-term overhead resistance at $27.95 to $28.97 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 2,393,390 shares. If that breakout triggers soon, then RSG will have a great chance of re-testing or possibly taking out its next major overhead resistance level at $30.78 a share. Keep in mind that any move above $27.74 to $27.94 a share will push RSG back above both 200-day and 50-day moving averages, which is bullish price action.

One can look to buy RSG off any weakness to anticipate that breakout, and simply use a stop that sits just below some near-term support levels at $27.09 to $27.03 share. If buy off weakness, then I would add to the position once RSG starts to clear $27.95 to $28.66 a share with high volume, and then add again above $28.97 a share.

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