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.

General Electric

One stock that insiders are active in here is General Electric  (GE - Get Report), which operates as an infrastructure and financial services company worldwide. Insiders are buying this stock into decent strength, since shares have trended higher by 13.7% over the last three months.

General Electric has a market cap of $273 billion and an enterprise value of $608 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 17.5. Its estimated growth rate for this year is -21.8%, and for next year it's pegged at 20.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $13.5 billion and its total debt is $351.40 billion. This stock currently sports a dividend yield of 3.7%.

A director just bought 20,000 shares, or about $543,000 worth of stock, at $ 27.15 per share. Another director also just bought 20,000 shares, or about $538,000 worth of stock, at $26.93 per share.

From a technical perspective, GE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been consolidating and trending sideways for the last few weeks, with shares moving between $26.55 on the downside and around $27 a share on the upside. This sideways trend is coming after shares of GE recently gapped up sharply higher from $25 to $28.68 a share with heavy upside volume flows.

If you're bullish on GE, then I would look for long-biased trades as long as this stock is trending above that recent low of $26.55 and then once it breaks out above some near-term overhead resistance levels at $27.50 to $28 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 volume of 45.58 million shares. If that breakout triggers soon, then GE will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $26.68 a share.

Travelers

Another stock that insiders are loading up on here is Travelers (TRV - Get Report), which provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations and individuals in the U.S. and internationally. Insiders are buying this stock into modest strength, since shares have moved up by 3.9% over the last six months.

Travelers Companies has a market cap of $33 billion and an enterprise value of $34 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 9.6 and a forward price-to-earnings of 10.9. Its estimated growth rate for this year is -11.1%, and for next year it's pegged at 1.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $4.74 billion and its total debt is $6.35 billion. This stock currently sports a dividend yield of 2%.

A director just bought 2,100 shares, or about $216,000 worth of stock, at $103.06 per share.

From a technical perspective, TRV is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $100.83 to its recent high of $105.40 a share. During that uptrend, shares of TRV have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TRV within range of triggering a near-term breakout trade.

If you're in the bull camp on TRV, then I would look for long-biased trades as long as this stock is trending above Tuesday's intraday low of $102.74 or above $102 a share and then once it breaks out above some near-term overhead resistance at $105.40 a share with volume that hits near or above its three-month average action of 2.10 million shares. If that breakout begins soon, then TRV will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $106.97 to $109 a share, or even $110 a share.

Immune Design

One clinical-stage biotechnology stock that insiders are in love with here is Immune Design  (IMDZ), which engages in the research and development of in vivo immunotherapy treatments. Insiders are buying this stock into notable weakness, since shares have traded down by 14.5% over the last six months.

Immune Design has a market cap of $472 million and an enterprise value of $460 million. This stock trades at a premium valuation, with a price-to-sales of 76.9 and a price-to-book of 6.3. Its estimated growth rate for this year is 45%, and for next year it's pegged at -9.6%. This is a cash-rich company, since the total cash position on its balance sheet is $75.53 million and its total debt is zero.

A director just bought 25,000 shares, or about $662,000 worth of stock, at $26.50 per share. Another director also just bought 10,000 shares, or about $265,000 worth of stock, at $26.50 per share.

From a technical perspective, IMDZ is currently trending below its 50-day moving average, which is bearish. This stock recently formed a double top at $29.49 to $29.24 a share. Following that top, shares of IMDZ have trended lower back below its 50-day moving average with above-average volume flows. Shares of IMDZ bounced higher on Tuesday right above some key near-term support at $23.22 a share.

If you're bullish on IMDZ, then I would look for long-biased trades as long as this stock is trending above some key near-term support at $23.22 a share and then once it breaks out above Tuesday's intraday high of $26.16 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 action of 111,998 shares. If that breakout begins soon, then IMDZ will set up to re-test or possibly take out its next major overhead resistance levels at $27.91 to $29.24 a share, or even $29.50 a share.

Neogen

Another stock that insiders are active in here is Neogen  (NEOG - Get Report), which develops, manufactures and markets various products and services for food and animal safety worldwide. Insiders are buying this stock into modest strength, since shares have moved higher by 7.5% over the last six months.

Neogen has a market cap of $1.7 billion and an enterprise value of $1.6 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 55.7 and a forward price-to-earnings of 44.6. Its estimated growth rate for this year is 15.8%, and for next year it's pegged at 20.5%. This is a cash-rich company, since the total cash position on its balance sheet is $102.15 million and its total debt is zero.

The president just bought 5,425 shares, or about $248,000 worth of stock, at $45.84 per share.

From a technical perspective, NEOG is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock spiked higher on Tuesday right off its 200-day moving average of $45.15 a share. That move to the upside is now starting to push shares of NEOG within range of triggering a near-term breakout trade above some key overhead resistance levels.

If you're bullish on NEOG, then I would look for long-biased trades as long as this stock is trending above its 200-day at $45.15 and then once it breaks out above some key near-term overhead resistance levels at $47.99 to $48.10 a share and then above its 50-day moving average of $48.42 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 157,750 of shares. If that breakout triggers soon, then NEOG will set up to re-test or possibly take out its next major overhead resistance levels at $51.79 to $52 a share.

Huntington Bancshares

One final stock with some decent insider activity is regional banking player Huntington Bancshares  (HBAN - Get Report), which provides commercial, small business, consumer and mortgage banking services. Insiders are buying this stock into notable strength, since shares trended higher by 11% over the last six months.

Huntington Bancshares has a market cap of $8.7 billion and an enterprise value of $14.9 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 14.5 and a forward price-to-earnings of 12.1. Its estimated growth rate for this year is 12.5%, and for next year it's pegged at 9.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.02 billion and its total debt is $7.17 billion. This stock currently sports a dividend yield of 2.2%.

The CEO just bought 10,000 shares, or about $107,000 worth of stock, at $10.78 to $10.79 per share. From a technical perspective, HBAN is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently formed a double top at $11.30 to $11.32 a share. Since that top, shares of HBAN have been trending lower and the stock has now broken back below its 50-day moving average.

If you're bullish on HBAN, then I would look for long-biased trades as long as this stock is trending above some near-term support at $10.68 or above $10 a share and then once it breaks out back above its 50-day moving average of $10.97 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 volume of 8.99 million shares. If that breakout hits soon, then HBAN will set up to re-test or possibly take out its next major overhead resistance levels at $11.20 to its 52-week high of $11.32 a share.

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