Company insiders will sell their own stock for all sorts of reasons. They might need cash for a fancy new car, a large tax bill or simply for diversification purposes.
Insiders, however, usually buy their own shares for one reason only: They think the stock is undervalued with tremendous upside.
Recently, a number of companies' corporate insiders have been loading up on stock. These insiders see value, which warrants a closer look at these names.
One semiconductor player that insiders are active in right now is Intel Corporation (INTC) , which designs, manufactures and sells computer, networking and communications platforms worldwide.
Intel has a market cap of $167 billion. This stock trades at a fair valuation, with a forward price-to-earnings ratio of 11.9 times. Its estimated growth rate for this year is 5.10%, and for next year it's pegged at 3.80%. This is not a cash-rich company, since its total cash position is $17.29 billion, and its total debt is $25.75 billion.
The CFO bought 13,888 shares, or $504,000 worth of stock, at $36.30 per share.
If you're bullish on INTC, I would look for long-biased trades if this stock is trending above some near-term support at $35 or at $34.40, and then once it breaks out above resistance levels at $36.60 to $37.22 with volume near or above its three-month average of 21.24 million shares. Some possible upside targets off that breakout are its 52-week high of $38.45 to $40 a share.