5 Stocks Insiders Love Right Now: GNC, AXP, AVP, ASPS, SM

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 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.

Insiders, however, usually buy their own shares for one reason only: They think the stock is cheap and has tremendous upside.

Recently, a number of companies' corporate insiders have bought stock. These insiders are finding some value in this market, which warrants a closer look at these names.

GNC Holdings

One consumer goods player that investors are loading up on here is GNC Holdings (GNC) , which operates as a specialty retailer of health, wellness and performance products.

GNC Holdings has a market cap of $564 million. This stock trades at a fair valuation, with a forward price-to-earnings of 6.4. Its estimated growth rate for this year is -37.2%, and for next year it's pegged at -5.2%. This is not a cash-rich company, since its total cash position is $34.46 million and its total debt is $1.54 billion.

The CEO just bought 592,259 shares, or $5 million worth of stock, at $8 to $8.49 per share.

If you're bullish on GNC Holdings, I would look for long-biased trades as long as this stock is trending above near-term support at $8 or $7.62 a share, then once it breaks out above resistance, at $9 to $9.23 a share, with volume near or above its three-month average of 3.3 million shares. Some possible upside targets are its next major resistance levels at its 20-day of $9.83 or $10.30 to $11 a share.

American Express

Another financial player that insiders are active in is American Express (AXP) , which provides charge and credit payment card products and travel-related services to consumers and businesses worldwide.

American Express has a market cap of $73 billion. This stock trades at a fair valuation, with a forward price-to-earnings of 13. Its estimated growth rate for this year is 0.20%, and for next year it's pegged at 10.4%. This is not a cash-rich company, since its total cash position is $25.76 billion and its total debt is $54.83 billion.

A director just bought 4,000 shares, or about $318,000 worth of stock, at $79.73 per share.

If you're bullish on American Express, I would look for long-biased trades if this stock is trending above its 20-day at $78.99 a share, and then once it breaks out above $82.50 to $83.27 a share, with volume near or above its three-month average of 4.09 million shares. Some possible upside targets off that move are $87.50 to $90 a share.

Avon Products

One personal products player insiders are jumping into here is Avon Products (AVP) , which is a manufacturer and marketer of beauty and related products.

Avon Products has a market cap of $1.9 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 10.7. Its estimated growth rate for this year is 600%, and for next year it's pegged at 50%. This is not a cash-rich company, since its total cash position is $654.40 million and its total debt is $1.89 billion.

A vice president just bought 150,000 shares, or about $655,000 worth of stock, at $4.37 per share.

If you're in the bull camp on Avon Products, I would look for long-biased trades if this stock is trending above support at $4.40 to $4.09 a share, and once it breaks out above resistance at $4.60 to $4.69 a share, with volume near or above its three-month average of 5.92 million shares. Some possible upside targets off that move are its 200-day at $5.16 to its 50-day at $5.34 a share.

Altisource Portfolio Solutions

One services player that insiders love here is Altisource Portfolio Solutions (ASPS) , which is a marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries.

Altisource Portfolio Solutions has a market cap of $467 million. This stock trades at a fair valuation, with a forward price-to-earnings of 10.3. Its estimated growth rate for this year is -41.6%, and for next year it's pegged at -10.10%. This is not a cash-rich company, since its total cash position is $195.05 million and its total debt is $480.68 million.

A director just bought 25,000 shares, or $547,000 worth of stock, at $21.91 per share.

If you're bullish on Altisource Portfolio Solutions, I would look for long-biased trades if this stock is trending above support, at $23.50 to $22.50 a share, then once it breaks out above resistance at $25.50 a share, with volume near or above its three-month average of 311,907 shares. Some possible upside targets off that breakout are its 50-day at $26.88 to its 200-day at $28.08 a share.

SM Energy

My final stock with some big insider buying is commodity player SM Energy (SM) , which is an independent energy company.

SM Energy has a market cap of $2.8 billion. This stock trades at a cheap valuation, with a price-to-sales of 2.43. Its estimated growth rate for this year is 41.4%, and for next year its pegged at 98.2%. This is not a cash-rich company, since its total cash position is $9.37 million and its total debt is $2.90 billion.

A director just bought 10,000 shares, or $256,000 worth of stock, at $25.69 to $25.70 per share.

If you're bullish on SM Energy, I would look for long-biased trades if this stock is trending above support at $24.43 a share, and then once it breaks out above resistance at $26 to $26.50 a share, with volume near or above its three-month average of 3.21 million shares. Some possible upside targets off that breakout are its 20-day at $27.66 to $29.30, or even its 50-day at $31.49 a share.

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

More from Stocks

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

PayPal Wants to Consolidate the World of Rewards Points

PayPal Wants to Consolidate the World of Rewards Points

Rising Oil Prices Will Be a Wash for U.S. Economy, JPMorgan Says

Rising Oil Prices Will Be a Wash for U.S. Economy, JPMorgan Says

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit