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.

Lions Gate Entertainment

One stock that insiders are jumping into here is Lions Gate Entertainment  (LGF), which is engaged in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales activities. Insiders are buying this stock into decent strength, since shares have moved to the upside by 10.2% over the last three months.

Lions Gate Entertainment has a market cap of $4.3 billion and an enterprise value of $5.7 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 21.7 and a forward price-to-earnings of 18.9. Its estimated growth rate for this year is 41.3%, and for next year it's pegged at 11.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $28.89 million and its total debt is $1.41 billion.

A director just bought 35,000 shares, or about $1.09 million worth of stock, at $30.97 per share.

From a technical perspective, LGF is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been consolidating and trending sideways for the last few weeks, with shares moving between $30.70 on the downside and around $31.75 on the upside. This sideways trend is coming after shares of LGF recently gapped down sharply lower from over $34 to $31 with heavy downside volume.

If you're bullish on LGF, then I would look for long-biased trades as long as this stock is trending above that recent low of $30.70 and then once it breaks out above some near-term overhead resistance levels at $31.75 a share and over both its 200-day at $31.85 and its 50-day at $32.47 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 1.37 million shares. If that breakout begins soon, then LGF will set up to re-fill some of its previous gap-down-day zone that started near $34 a share. If that gap gets filled with volume, then this stock could trend up towards $36 to $40 a share.

Accelerate Diagnostics

Another stock that insiders are active in here is Accelerate Diagnostics  (AXDX - Get Report), which focuses on developing and commercializing solutions for the diagnosis of serious infections. Insiders are buying this stock into notable strength, since shares have jumped higher by 15.5% over the last three months.

Accelerate Diagnostics has a market cap of $1.05 billion and an enterprise value of $897 million. This stock trades at a premium valuation, with a price-to-book of 15.5. This is a cash-rich company, since the total cash position on its balance sheet is $66.68 million and its total debt is $160,000.

A director just bought 11,000 shares, or about $241,000 worth of stock, at $21.85 per share.

From a technical perspective, AXDX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong over the last two months and change, with shares moving higher from its low of $16.50 to its intraday high of $24.05 a share. During that uptrend, shares of AXDX have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AXDX within range of triggering a near-term breakout trade.

If you're in the bull camp on AXDX, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $22 or at its 50-day of $21.04 and then once it breaks out above some near-term overhead resistance levels at $24 to $24.36 a share with volume that hits near or above its three-month average action of 201,910 shares. If that breakout hits soon, then AXDX will set up to re-test or possibly take out its next major overhead resistance levels at $24.66 to $28 a share, or even $30 a share.

Opko Health

Another stock that insiders are moving into here is Opko Health  (OPK - Get Report), a biopharmaceutical and diagnostics company that engages in the discovery, development and commercialization of novel and proprietary technologies in the U.S. and internationally. Insiders are buying this stock into massive strength, since shares have rallied huge by 71.9% over the six months.

Opko Health has a market cap of $6.5 billion and an enterprise value of $6.4 billion. This stock trades at a fair valuation, with a price-to-sales of 71.02 and a price-to-book of 7.35. Its estimated growth rate for this year is 26.8%, and for next year it's pegged at 50%. This is not a cash-rich company, since the total cash position on its balance sheet is $96.91 million and its total debt is $147.34 million.

The CEO just bought 19,800 shares, or about $282,000 worth of stock, at $14.24 to $14.33 per share.

From a technical perspective, OPK is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been consolidating and trending sideways over the last two months and change, with shares moving between $13.10 on the downside and $15.23 on the upside. Shares of OPK are now starting to spike higher right off its 50-day moving average and it's beginning to move within range of triggering a big breakout trade above the upper-end of its recent range.

If you're bullish on OPK, then I would look for long-biased trades as long as this stock is trending above some near-term support at $14 a share or around $13 a share and then once it breaks out above some near-term overhead resistance levels $14.90 to its 52-week high of $15.23 a share with high volume. Look for a sustained move or close above the levels with volume that hits near or above its three-month average action of 3.60 million shares. If that breakout kicks off soon, then OPK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $17 to $20 a share.

Ebix

One technology stock that insiders are in love with here is Ebix  (EBIX - Get Report), which provides software and e-commerce solutions to the insurance industry. Insiders are buying this stock into huge strength, since shares have soared higher by 109% over the last six months.

Ebix has a market cap of $1.02 billion and an enterprise value of $1.10 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 17.3. Its estimated growth rate for the next quarter is 25%, and for this year it's pegged at 4.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $52.58 million and its total debt is $121.99 million. This company currently sports a dividend yield of 1%.

A beneficial owner just bought 30,000 shares, or about $861,000 worth of stock, at $28.65 to $28.72 per share.

From a technical perspective, EBIX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has attempting to carve out a bottom over the last month and change, with shares finding buying interest at $28.67, $28.45 and $28.05 a share. Shares of EBIX bounced off those support levels on Tuesday with decent upside volume flows. That bounce is now starting to push shares of EBIX within range of triggering a major breakout trade.

If you're bullish on EBIX, then I would look for long-biased trades as long as this stock is trending above those recent support levels or above its 50-day at $27.81 and then once it breaks out above some key near-term overhead resistance levels at $30 to $30.50 a share and then above $30.78 to its 52-week high of $31.55 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action 454,800 of shares. If that breakout develops soon, then EBIX will set up to enter new 52-week-high territory above $31.55, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40 a share.

Coty

One final stock with some bullish insider activity is Coty  (COTY - Get Report), which manufactures, markets and distributes women's and men's fragrances, color cosmetics and skin and body care related products worldwide. Insiders are buying this stock into major strength, since shares have ripped higher by 51% over the last six months.

Coty has a market cap of $8.6 billion and an enterprise value of $10.2 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 27. Its estimated growth rate for the next quarter is 166.7%, and for this year it's pegged at 14.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.20 billion and its total debt is $3.41 billion. This stock currently sports a dividend yield of 0.8%.

The CFO just bought 17,569 shares, or about $436,000 worth of stock, at $24.86 per share. From a technical perspective, COTY is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong over the last six months, with shares moving higher from its low of $16.03 to its recent high of $26.76 a share. During that uptrend, shares of COTY have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of COTY within range of triggering a near-term breakout trade.

If you're bullish on COTY, then I would look for long-biased trades as long as this stock is trending above its 50-day moving average of $23.25 or above more near-term support at $22 and then once it breaks out above its all-time high at $25.76 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 1.06 million shares. If that breakout materializes soon, then COTY will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $30 to $35 a share.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.