One personal services player that insiders are jumping into here is Shutterfly (SFLY), which is engaged in the manufacture and retail of digital personalized products and services in the U.S. Insiders are buying this stock into modest weakness, since shares are off by 6% so far in 2014.
Shutterfly has a market cap of $1.8 billion and an enterprise value of $1.5 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 197.94 and a forward price-to-earnings of 153.25. Its estimated growth rate for this year is -245.8%, and for next year it's pegged at 188.60%. This is a cash-rich company, since the total cash position on its balance sheet is $499.08 million and its total debt is $243.49 million. After you back out the debt, Shutterfly has a total of $255.59 million of cash on its books.
From a technical perspective, SFLY is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has recently crossed back above its 50-day moving average of $47.29 a share. That move is quickly pushing shares of SFLY within range of triggering a near-term breakout trade.
If you're bullish on SFLY, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $46 or at $45 and then once it breaks out above some near-term overhead resistance levels at $48.39 to $50.16 a share and then above $52 to $52.50 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 913,512 shares. If that breakout hits soon, then SFLY will set up to re-test or possibly take out its next major overhead resistance levels at $58 to $60 a share.