Stock Quotes in this Article: AFSI, FCX, IRM, RST, AXDX

 MADISON, 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.

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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.

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At the end of the day, its large 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 it's 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. Here's a look at some stocks where insiders have been doing some big buying in per SEC filings.

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Freeport-McMoRan Copper & Gold

One integrated mining player that insiders are loading up on here is Freeport-McMoRan Copper & Gold (FCX), which deals in the mining of copper, gold and molybdenum. Insiders are buying this stock into weakness, since shares are off 12% so far in 2013.

Freeport McMoRan Copper & Gold has a market cap of $28 billion and an enterprise value of $33.8 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 9.72 and a forward price-to-earnings of 7.86. Its estimated growth rate for this year is 9%, and for next year it's pegged at 8.3%. This is not a cash-rich company, since the total cash position on its balance sheet is $9.6 billion and its total debt is $10.09 billion. This stock currently sports a dividend yield of 4%.

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A director just bought 1.1 million shares, or about $34.29 million worth of stock, at $31.16 per share.

From a technical perspective, FCX is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last month, with shares dropping from its high of $32.15 to its recent low of $29.15 a share. During that move, shares of FCX have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of FCX have so far held its recent lows at $29.15 to $29.17 a share.

If you're bullish on FCX, then I would look for long-biased trades as long as this stock is trending above its recent lows at $29.17 to $29.15, and then once it breaks out above some near-term overhead resistance at $30.81 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 18.74 million shares. If we get that breakout, then FCX will set up to re-test or possibly take out its next major overhead resistance levels at $32 to $32.60 a share, or its 200-day at $33.35 a share. Any high-volume move above its 200-day will then put its next major overhead resistance levels at $35 to $37 into range for shares of FCX.

AmTrust Financial Services

Another financial player that insiders are snapping up a large amount of stock in here is AmTrust Financial Services (AFSI), which is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits. Insiders are buying this stock into strength, since shares are up 16% so far in 2013.

AmTrust Financial Services has a market cap of $2.2 billion and an enterprise value of $2.3 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 11.45 and a forward price-to-earnings of 9.04. Its estimated growth rate for this year is 17.7%, and for next year it's pegged at 13.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $480.75 million and its total debt is $609.93 million. This stock currently sports a dividend yield of 1.7%.

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A director just bought 1 million shares, or $25 million worth of stock, at $25 per share.

From a technical perspective, AFSI is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $28.86 to its recent high of $34.76 a share. During that uptrend, shares of AFSI have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AFSI within range of triggering a near-term breakout trade.

If you're in the bull camp on AFSI, then look for long-biased as long as this stock is trending above its 50-day at $32.79 and then once it breaks out above some near-term overhead resistance levels at $34.76 to its 52-week high at $36.41 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 410,639 shares. If that breakout triggers soon, then AFSI will set up to enter new 52-week-high territory above $36.41, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $43.

Rosetta Stone

One application software player that insiders are active in here is Rosetta Stone (RST), a provider of technology-based language learning solutions. Insiders are buying this stock into strength, since shares are up 28% so far in 2013.

Rosetta Stone has a market cap of $341 million and an enterprise value of $199 million. This stock trades at a premium valuation, with a forward price-to-earnings of 61.31. Its estimated growth rate for the next quarter is 37.5%, and for this year it's pegged at 133.3%. This is a cash-rich company, since the total cash position on its balance sheet is $139.31 million and its total debt is zero.

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A director just bought 32,368 shares, or about $495,000 worth of stock, at $15.32 per share.

From a technical perspective, RST is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently gapped down from $17.50 a share to its recent low of $15 a share with heavy downside volume. Following that move, shares of RST have started to rebound and the stock is now moving within range of triggering a near-term breakout trade.

If you're bullish on RST, then look for long-biased trades as long as this stock is trending above $15 and then once it breaks out above some near-term overhead resistance levels at $16 to its 50-day moving average at $16.59 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 184,130 shares. If that breakout triggers soon, then RST will set up to re-test or possibly take out its next major overhead resistance levels at $17.70 to its 52-week high at $18.30 a share. Any high-volume move above its 52-week high at $18.30 will then put $20 to $22 into range for shares of RST.

Iron Mountain

One business support services player that insiders are active in here is Iron Mountain (IRM), which is a global provider of information protection and storage services. Insiders are buying this stock into notable weakness, since shares are off by 20% during the last three months.

Iron Mountain has a market cap of $5.5 billion and an enterprise value $9 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 38.09 and a forward price-to-earnings of 20.86. Its estimated growth rate for this year is -2.5% and for next year it's pegged at 17.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $230 million and its total debt is $3.85 billion. This stock currently sports a dividend yield of 3.7%.

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The CEO just bought 12,000 shares, or about $348,000 worth of stock, at $29 per share.

From a technical perspective, IRM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last month, with shares falling sharply from its 52-week high at $39.71 to its 52-week low of $27.72 a share. During that downtrend, shares of IRM have consistently been making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of IRM into extremely oversold territory, since its current relative strength index reading is 18.83.

If you're bullish on IRM, then look for long-biased trades as long as this stock is trending above some key near-term support levels at either $28.23 or its 52-week low at $27.72, and then once it breaks out above its gap down day high of $29.69 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 1.35 million shares. If that breakout triggers soon, then IRM will set up to re-fill some of its recent gap down zone that started just above $34 a share.

Accelerate Diagnostics

One final name with some decent insider buying is Accelerate Diagnostics (AXDX), which engages in the research and development and commercialization of proprietary surface chemistry formulation and quantitative bio-analytical measurement instruments. Insiders are buying this stock into big time strength, since shares are up 112% so far in 2013.

Accelerate Diagnostics has a market cap of $333 million and an enterprise value of $300 million. This stock trades at a premium valuation, since its price-to-book is 11.48. This is a cash-rich company, since the total cash position on its balance sheet is $29.26 million and its total debt is zero.

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A beneficial owner just bought 45,508 shares, or about $379,000 worth of stock, at $8.29 to $8.42 per share.

From a technical perspective, AXDX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last month and change, with shares soaring higher from its low of $4.80 to its recent high of $9.20 a share. During that uptrend, shares of AXDX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AXDX within range of triggering a major breakout trade.

If you're bullish on AXDX, then look for long-biased trades as long as this stock is trending above $8.60 or above $8 and then once it breaks out above its 52-week high at $9.20 a share with high volume. Look for a sustained move or close above $9.20 a share with volume that hits near or above its three-month average action of 79,931 shares. If that breakout triggers soon, then AXDX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $10 to $12 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Madison, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.