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. Must Read: 5 Stocks Set to Soar on Bullish Earnings Mondelez International One consumer goods player that insiders are active in here is Mondelez International , which manufactures and markets snack food and beverage products worldwide. Insiders are buying this stock into modest strength, since shares have trended up by 3.8% over the last six months. Mondelez International has a market cap of $62 billion and an enterprise value of $76 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 29 and a forward price-to-earnings of 18.3. Its estimated growth rate for this year is -0.60%, and for next year it's pegged at 16%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.63 billion and its total debt is $16.70 billion. This stock currently sports a dividend yield of 1.6%. A director just bought 25,000 shares, or about $927,000 worth of stock, at $37.09 per share. From a technical perspective, MDLZ 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, with shares moving between $34.89 on the downside and $37.88 on the upside. Shares of MDLZ are just starting to spike higher right above both its 50-day and 200-day moving averages. That spike is quickly pushing shares of MDLZ within range of triggering a major breakout trade above the upper-end of its recent sideways trending chart pattern. If you're bullish on MDLZ, then I would look for long-biased trades as long as this stock is trending above some key near-term support $35.50 or above that recent range low of $34.89 a share and then once it breaks out above some key near-term overhead resistance levels at $37.45 to $37.61 a share and then above $37.88 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 8.03 million shares. If that breakout triggers soon, then MDLZ will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $39.54 a share. Any high-volume move above that level will then give MDLZ a chance to trend well north of $40 a share. Must Read: 5 Rocket Stocks to Buy as the Market Hits New Highs Rentrak Another stock that insiders are loading up on here is Rentrak , which operates as a media measurement and information company serving the entertainment, television, video and advertising industries worldwide. Insiders are buying this stock into big weakness, since shares have trended lower by 31% over the last three months. Rentrak has a market cap of $862 million and an enterprise value of $810 million. This stock trades at a premium valuation, with a forward price-to-earnings of 810. Its estimated growth rate for this year is -13.6%, and for next year it's pegged at 110.4%. This is a cash-rich company, since the total cash position on its balance sheet is $85.02 million and its total debt is zero. A beneficial owner just bought 439,070 shares, or about $24.84 million worth of stock, at $53.17 to $59.84 per share. That same beneficial owner also just bought 128,195 shares, or about $7.02 million worth of stock, at $54.10 to $55.99 per share. From a technical perspective, RENT is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply lower from $84.23 to $47.91 a share with heavy downside volume. Following that move, shares of RENT have started to rebound off that $47.91 low and now it's beginning to trend within range of triggering a near-term breakout trade. If you're in the bull camp on RENT, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $55 or around $52.50 to $50 a share and then once it breaks out above some key near-term overhead resistance levels at $61.45 a share to its 200-day moving average of $62.35 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 of 269,108 shares. If that breakout begins soon, then RENT will set up to re-fill some of its recent gap-down-day zone that started at $84.23 a share. Must Read: How to Trade the Market's Most-Active Stocks Carbo Ceramics One oilfield services stock that insiders are jumping into here is Carbo Ceramics , which manufactures and sells ceramic proppants, resin-coated ceramic and resin-coated sand proppants for use in the hydraulic fracturing of natural gas and oil wells in the U.S. and internationally. Insiders are buying this stock into massive weakness, since shares have plunged by 60% over the last six months. CARBO Ceramics has a market cap of $969 million and an enterprise value of $940 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings off 17.2 and a forward price-to-earnings of 99. Its estimated growth rate for this year is -108.9%, and for next year it's pegged at 240%. This is not a cash-rich company, since the total cash position on its balance sheet is $24.30 million and its total debt is $25 million. This stock currently sports a dividend yield of 3.3%. A director just bought 20,000 shares, or about $734,000 worth of stock, at $35.73 to $ 37.71 per share. That same director also just bought 20,000 shares, or about $752,000 worth of stock, at $36.94 to $38.05 per share. From a technical perspective, CRR is currently trending just above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending over the last month and change, with shares moving higher from its low of $27.97 to its intraday high of $41.89 a share. During that uptrend, shares of CRR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CRR within range of triggering a major breakout trade. If you're bullish on CRR, then I would look for long-biased trades as long as this stock is trending above some key near-term support levels at $36.27 to around $35 a share and then once it breaks out above Tuesday's intraday high of $41.89 to more key resistance at $42.98 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 of 1.15 million shares. If that breakout gets set off soon, then CRR will set up to re-test or possibly take out its next major overhead resistance levels at $51.13 to $52.50 a share, or even $57.20 a share. Must Read: 4 Stocks Under $10 Making Big Moves Colfax Another stock that insiders are in love with here is Colfax , which provides gas- and fluid-handling and fabrication technology products and services to commercial and governmental customers worldwide. Insiders are buying this stock into notable weakness, since shares have dropped by 18% over the last six months. Colfax has a market cap of $6.4 billion and an enterprise value of $7.6 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 17 and a forward price-to-earnings of 21.3. Its estimated growth rate for this year is -3.2%, and for next year it's pegged at 14.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $305.45 million and its total debt is $1.54 billion. A director just bought 500,000 shares, or about $23.12 million worth of stock, at $46.12 to $47.62 per share. From a technical perspective, CFX is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock recently formed a double bottom chart pattern at $43.16 to $42.86 a share. Following that bottom, shares of CFX have rebounded sharply higher back above its 50-day moving average to its recent high of $52.29 a share. That move is now pushing shares of CFX within range of triggering a near-term breakout trade above some key overhead resistance levels. If you're bullish on CFX, then I would look for long-biased trades as long as this stock is trending above its 50-day moving average of $48.31 or above some more near-term support at $45.91 a share and then once it breaks out above some near-term overhead resistance levels at $52.29 to $53.15 and then above more resistance at $54.24 to $55.33 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 of 1.14 million shares. If that breakout materializes soon, then CFX will set up to re-test or possibly take out its next major overhead resistance levels at $57.64 to $58.63 a share, or even its 200-day moving average of $60.13 a share. Must Read: 5 Stocks Poised for Breakouts Apollo Global Management One final stock with some large insider buying is Apollo Global Management , which is a publicly owned investment manager. It primarily provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. Insiders are buying this stock into modest strength, since shares have moved up 4.3% over the last three months. Apollo Global Management has a market cap of $3.8 billion and an enterprise value of $16.6 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 38 and a forward price-to-earnings of 10.5. Its estimated growth rate for this year is 42.3%, and for next year it's pegged at 10.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.54 billion and its total debt is $3.70 billion. This stock currently sports a dividend yield of 14.5%. A director just bought 182,500 shares, or about $4.34 million worth of stock, at $23.80 per share. From a technical perspective, APO is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending over the last four months, with shares moving higher from its low of $18.70 to its recent high of $24.88 a share. During that uptrend, shares of APO have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of APO within range of triggering a big breakout trade above some key near-term overhead resistance levels. If you're bullish on APO, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $22.56 or around $21 and then once it breaks out above some key near-term overhead resistance levels at around $24 to $24.88 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 1.29 million shares. If that breakout triggers soon, then APO will set up to re-test or possibly take out its next major overhead resistance levels at $25.83 to $26.51 a share, or even $27.09 to $29 a share. -- Written by Roberto Pedone in Delafield, Wis. Must Read: 5 Hated Stocks That Could Pop in February Follow Stockpickr on Twitter and become a fan on Facebook.
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