Insiders And Analysts Agree These 5 Stocks Are Trading Below Value

If you believe in the wisdom of analysts, you probably find stocks that have discrepancies between current price and target price attractive investments. With that in mind we created a list of US stocks trading below their lowest analyst target price and with at least 5 analysts target prices.

Why? Analyst prices tend to be inflated, so we ran a screen that used the most pessimistic analyst target price as the benchmark for our analysis. In addition, we only focused on companies that have more than 5 analyst target prices to make sure we only focus on companies that have decent analyst coverage. Furthermore, analyst ratings can become outdated, with a minimum of 5 ratings we increase our chances of using recent data.

But wait, There’s more.

We also screened for significant net insider buying activity over the past six months. Those who work for the company tend to know more about their companies than anyone else. Their investment activity of their company is closely monitored and can tell us a lot about where they feel the business is heading.

Here we look at insider buying as a percentage of the share float. Companies experiencing net insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. (Inversely, insider selling serves as a negative indicator.)

Business Section: Investing Ideas

We were left with 5 stocks, all listed below in order of potential upside to analyst ratings.

Take a look at these names and the data associated with the screens (insider buying, analyst rating). Do you agree that these stocks are trading below value?

Use this list as a starting point for your own analysis.
INTERACTIVE CHART: Press play to see changes in average analyst ratings over the past two years:

1. Keynote Systems Inc. ( KEYN): Provides Internet and mobile cloud monitoring solutions worldwide. Market cap at $236.52M, most recent closing price at $13.34. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $17. This implies a potential upside of 28.69% from current levels around $13.21. Over the last six months, insiders were net buyers of 561,662 shares, which represents about 4.21% of the company’s 13.35M share float.

 

2. STAAR Surgical Company ( STAA): Designs, develops, manufactures, and sells implantable lenses for the cataracts and refractive surgery. Market cap at $202.4M, most recent closing price at $5.53. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $7. This implies a potential upside of 26.58% from current levels around $5.53. Over the last six months, insiders were net buyers of 271,585 shares, which represents about 1.05% of the company’s 25.80M share float.

 

3. Stewart Enterprises Inc. ( STEI): Provides funeral and cemetery products and services in the death care industry in the United States and Puerto Rico. Market cap at $628.4M, most recent closing price at $7.36. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $9. This implies a potential upside of 20.80% from current levels around $7.45. Over the last six months, insiders were net buyers of 1,314,895 shares, which represents about 2.1% of the company’s 62.63M share float.

 

4. Kratos Defense & Security Solutions, Inc. ( KTOS): Provides engineering, war fighter, security, and information technology services, solutions, and products in the United States. Market cap at $249.61M, most recent closing price at $4.41. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $5. This implies a potential upside of 15.74% from current levels around $4.32. Over the last six months, insiders were net buyers of 11,127,500 shares, which represents about 25.1% of the company’s 44.34M share float.

 

5. Amicus Therapeutics, Inc. ( FOLD): Focuses on the discovery, development, and commercialization of orally-administered, small molecule drugs for the treatment of various human genetic diseases. Market cap at $271.86M, most recent closing price at $5.51. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $6. This implies a potential upside of 15.38% from current levels around $5.2. Over the last six months, insiders were net buyers of 2,949,580 shares, which represents about 11.93% of the company’s 24.73M share float.

 

 

Written by Rebecca Lipman.

Did you find this list useful as a starting point for your analysis? Do you have a list requests? Leave your comments below and we’ll do our best to deliver.

 

Analyze These Ideas: Getting Started: Read descriptions for all companies mentioned

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