Company insiders will sell their own stock for a variety of different reasons. They might need the cash for a new house, or they might need the money to pay a large tax bill. Sometimes they sell simply for diversification purposes.
Insiders, however, usually buy their own shares for one reason only: They think the stock is cheap and has big upside.
Recently, a number of companies' corporate insiders have been loading up on their own stock. These insiders smell opportunity, which warrants a closer look at these names.
One financial player that insiders are in love with here is Huntington Bancshares (HBAN) , which provides commercial, small business, consumer, and mortgage banking services.
Huntington Bancshares has a market cap of $13.9 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 11.64. Its estimated growth rate for this year is 37.3%, and for next year it's pegged at 19.6%. This is not a cash-rich company, since its total cash position $1.65 billion and its total debt is $10.63 billion.
The CEO just bought 50,000 shares, or $619,000 worth of stock, at $12.39 to $12.40 per share.
If you're bullish on Huntington Bancshares, then I would look for long-biased trades as long as this stock is trending above its 200-day at $12.07 and then once it breaks out above a key downtrend line over its 50-day at $12.99 to $13.33 with volume near or above its three-month average of 10.46 million shares. Some possible upside targets off that breakout are $13.62 to its 52-week high of $14.74 a share.