James Dennin, Kapitall: Stocks are rebounding today on strong earnings. We looked for insider buying spikes among stocks with earnings next week. Stocks had a good day yesterday with all three major indices advancing. A lot of the advances came from technology and growth plays: Twitter (TWTR), Solar City (SCTY), and Keurig (GMCR) among the biggest gainers. Read more from Kapitall: The most Republican companies in the country (it’s not the Kochs) are… Social media companies have been pressured all year by high valuations, with an ETF focused on the sector falling 8 of the last 11 days. That sell-off, however, seems to have been enough to make some of these companies attractive again. At least in the short term. Small caps and internet companies have underperformed considerably. Conversely, some of the year's performers have been high-yield dividend stocks like utilities. We decided to find some plays that could benefit if the trend continues into the next couple weeks of earnings season. One good way to screen for potential earnings surprises, particularly among smaller companies, is by looking for spikes in insider buying. Insider buying is when workers at the company buy shares or add to their position. At large companies, this often isn't the sign of anything particularly interesting. One employee rarely has access to information that's going to greatly affect the entire company at large. However, smaller companies are a lot more cohesive. When insiders act on information, it is generally seen as a possible indicator that people working at the company expect growth in the future. We screened all the stocks with earnings next week for companies experiencing a spike in insider buying. We were left with 5 stocks on our list. Click on the interactive chart to view data over time. Do you expect strong earnings from these stocks? Use the list below as a starting point for your own analysis, and let us know what you think in the comments.
1. Cache Inc. ( CACH): Operates as a mall-based specialty retailer of women's lifestyle sportswear and dresses in the United States. Market cap at $38.87M, most recent closing price at $2.32.Over the last six months, insiders were net buyers of 1,551,110 shares, which represents about 17.1% of the company's 9.07M share float. Earnings: May 12 2. Idera Pharmaceuticals, Inc. ( IDRA): Develops DNA- and RNA-based drug candidates for the treatment of infectious diseases, autoimmune and inflammatory diseases, cancer, and asthma and allergies, and for use as vaccine adjuvants. Market cap at $221.55M, most recent closing price at $2.49. Over the last six months, insiders were net buyers of 5,090,000 shares, which represents about 6.29% of the company's 80.97M share float. Earnings: May 13 3. MannKind Corp. ( MNKD ): Focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer. Market cap at $2.26B, most recent closing price at $6.20. Over the last six months, insiders were net buyers of 39,896,322 shares, which represents about 17.53% of the company's 227.59M share float. Earnings: May 12 4. Parkway Properties Inc. ( PKY): Engages in the operation, acquisition, ownership, management, and leasing of office properties. Market cap at $1.91B, most recent closing price at $18.42. Over the last six months, insiders were net buyers of 5,876,000 shares, which represents about 8.6% of the company's 68.31M share float. Earnings: May 12 5. Resolute Energy Corporation ( REN): Engages in the acquisition, exploration, exploitation, and development of oil and gas properties primarily in onshore properties in the United States. Market cap at $527.21M, most recent closing price at $7.33. Over the last six months, insiders were net buyers of 781,700 shares, which represents about 1.63% of the company's 48.02M share float.
Earnings: May 13(List compiled by James Dennin, a Kapitall Writer. Insider data sourced from Yahoo! Finance. Monthly returns sourced from Zacks Investment Research. All other data sourced from Finviz.)