Ceres

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Another stock that insiders are active in here is Ceres ( CERE), which sells seeds to produce renewable biomass feedstocks that can enable the large-scale replacement of petroleum and other fossil fuels. Insiders are buying this stock into some extreme weakness, since shares are down by 48% in the last six months.

Ceres has a market cap of $113 million and an enterprise value of $58 million. This stock trades at a premium valuation, with a price-to-sales of 19.79 and a price-to-book of 1.96. Its estimated growth rate for this year is 44%, and for next year it's pegged at -3.3%. This is a cash-rich company, since the total cash position on its balance sheet is $52.01 million and its total debt is just $161,000.

A beneficial owner just bought 42,880 shares, or around $197,000 worth of stock, at $4.61 per share. That same beneficial owner also just bought 131,264 shares, or around $615,000 worth of stock, at $4.65 per share.

From a technical perspective, CERE is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last three months, with shares soaring from its low of $3.43 to its recent high of $4.94 a share. During that move, shares of CERE have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CERE within range of triggering a near-term breakout trade.

If you're bullish on CERE, then I would look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $4.60 to $4.94 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 56,577 shares. If that breakout hits soon, then CERE will set up to re-test or possibly take out its next major over resistance levels at $5.62 to $6.16 a share.

I also featured Ceres recently in " 5 Heavily Shorted Stocks Set to Report."

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