DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons.

They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.

But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.

The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.

At the end of the day, it's institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity but twice as important to make sure the trend of the stock coincides with the insider buying.

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look five stocks whose insiders have been doing some big buying per SEC filings.

Continental Resources

One energy player that insiders are loading up on here is Continental Resources (CLR - Get Report) , which is engaged in the exploration, development and production of crude oil and natural gas properties in the north, south, and east regions of the U.S. Insiders are buying this stock into decent strength, since shares have moved higher by 18% so far in 2014.

Continental Resources has a market cap of $24.4 billion and an enterprise value of $29.8 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 39 and a forward price-to-earnings of 16. Its estimated growth rate for this year is 20.3%, and for next year it's pegged at 24.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $776.96 million and its total debt is $6.13 billion.

The CEO just bought 71,999 shares, or about $4.85 million worth of stock, at $67.22 to $67.94 per share.

From a technical perspective, CLR is currently trending above both its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been downtrending over the last month, with shares moving lower from its high of $80.91 to its recent low of $65.22 a share. During that downtrend, shares of CLR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of CLR have now started to bounce off that $65.22 low and it's starting to trend back above its 50-day moving average.

If you're bullish on CLR, then I would look for long-biased trades as long as this stock is trending above some key near-term support at $65.22 and then once it breaks out above some near-term overhead resistance at $68.94 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 1.95 million shares. If that breakout hits soon, then CLR will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $73.72 to $76.75 a share.

American Eagle Outfitters

Another apparel stores player that insiders are in love with here is American Eagle Outfitters (AEO - Get Report) , which operates as a specialty retailer of clothing, accessories and personal care products in the U.S. and internationally. Insiders are buying this stock into notable strength, since shares have trended higher by 22% over the last three months.

American Eagle Outfitters has a market cap of $2.7 billion and an enterprise value of $2.5 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 60 and a forward price-to-earnings of 18. Its estimated growth rate for this year is -20.3%, and for next year it's pegged at 30.5%. This is a cash-rich company, since the total cash position on its balance sheet is $262.63 million and its total debt is zero. This stock currently sports a dividend yield of 4.8%.

The CEO just bought 351,058 shares, or about $5.13 million worth of stock, at $14.47 per share.

From a technical perspective, AEO is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $10.18 to its recent high of $15.11 a share. During that uptrend, shares of AEO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AEO within range of triggering a near-term breakout trade.

If you're in the bull camp on AEO, then I would look for long-biased trades as long as this stock is trending above some key near-term support at $13.34 or above its 50-day at $12.67 and then once it breaks out above some key overhead resistance levels at $15.11 to $15.23 a share and then above its 52-week high at $16.95 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 5.36 million shares. If that breakout gets underway soon, then AEO will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $19.19 a share.

Conns

One electronics stores player that insiders are active in here is Conns (CONN - Get Report) , which operates as a specialty retailer of durable consumer goods and related services in Texas, Arizona, Louisiana, Oklahoma, and New Mexico the U.S. Insiders are buying this stock into massive weakness, since shares have crashed 61% so far in 2014.

Conns has a market cap of $1.1 billion and an enterprise value of $1.7 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 11.4 and a forward price-to-earnings of 9. Its estimated growth rate for this year is 12.1%, and for next year it's pegged at 15.3%. This is not a cash-rich company, since the total cash position on its balance sheet is $4.02 million and its total debt is $607.38 million.

A beneficial owner just bought 1,073,440 million shares, or about $29.85 million worth of stock, at $26.94 to $27.73 per share. The same beneficial owner also just bought 1,952,128 million shares, or about $59.84 million worth of stock, at $29.39 to $30.68 per share.

From a technical perspective, CONN is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply lower from around $44 to under $32 with heavy downside volume. Following that move, shares of CONN went on to print a new 52-week low of $26.60 a share. Shares of CONN have now started to rebound off that $26.60 low and it's starting to trend within range of triggering a major breakout trade above some key near-term overhead resistance levels.

If you're bullish on CONN, then I would look for long-biased trades as long as this stock is trending above some near-term support at $28 or above its 52-week low of $26.60 and then once it breaks out above some key near-term overhead resistance levels at $31.44 to its gap-down-day high of $33.65 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 volume of 1.34 million shares. If that breakout materializes soon, then CONN will set up to re-fill some of its previous gap-down-day zone that started just above $44.

Kindred Biosciences

One development stage biotechnology player that insiders are jumping into here is Kindred Biosciences (KIN) , which focuses on the development of therapies for pets. Insiders are buying this stock into major weakness, since shares have fallen sharply by 51% over the last six months.

Kindred Biosciences has a market cap of $188 million and an enterprise value of $69 million. This stock trades at a reasonable valuation, with a price-to-book of 1.66. Its estimated growth rate for this year is -54.9%, and for next year it's pegged at -25.1%. This is a cash-rich company, since the total cash position on its balance sheet is $112.44 million and its total debt is zero.

A director just bought 100,000 shares, or about $955,000 worth of stock, at $9.56 per share.

From a technical perspective, KIN is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply from over $14 to $10 a share with heavy downside volume. Following that move, shares of KIN have gone on to trend lower and print a new low of $9.25 a share.

If you're bullish on KIN, then I would look for long-biased trades as long as this stock is trending above its recent low of $9.25 a share and then once it breaks out above some key near-term overhead resistance levels at $10 to $11 a share and then above more resistance at $11.40 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 195,531 shares. If that breakout develops soon, then KIN will set up to re-fill some of its previous gap-down-day zone from August that started above $14 a share.

Agco

One final stock with some decent insider buying is Agco (AGCO - Get Report) , which  manufactures and distributes agricultural equipment and related replacement parts worldwide. Insiders are buying this stock into notable weakness, since shares have dropped by 22% so far in 2014.

Agco has a market cap of $4.2 billion and an enterprise value of $5.1 million. This stock trades at a fair valuation, with a trailing price-to-earnings of 8 and a forward price-to-earnings of 10. Its estimated growth rate for this year is -19.5%, and for next year it's pegged at -6.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $323.30 million and its total debt is $1.23 billion.

A director just bought 566,164 shares, or about $26 million worth of stock, at $45.67 to $45.97 per share. This same director also just bought 307,346 shares, or about $14.12 million worth of stock, at $45.96 per share.

From a technical perspective, AGCO is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly over the last three months, with shares moving lower from its high of $57.34 to its intraday and new 52-week low of $45 a share. During that move, shares of AGCO have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of AGCO are bucking the market weakness today and the stock is starting to bounce off its new 52-week low.

If you're bullish on AGCO, then look for long-biased trades as long as this stock is trending above its new 52-week low of $45 a share and then once it breaks out above some key near-term overhead resistance levels at $46.55 to $46 a share with high volume. Look for a sustained move or close above the levels with volume that registers near or above its three-month average volume of 1.32 million shares. If that breakout develops soon, then AGCO will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $48.11 to $49.66 a share. Any high-volume move above those levels will then give AGCO a chance to tag $51 to $52 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.