Stock Quotes in this Article: ANF, CLMS, OPK, ZINC, CAN

Delafield, Wis. (Stockpickr) --Corporate insiders sell their own companies' stock for a number of reasons.

>>Invest in Venture Capital's 5 Favorite Stocks

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.

>>5 Rocket Stocks to Buy for July

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, 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.

>>5 Hated Earnings Stocks You Should Love

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 five stocks whose finsiders have been doing some big buying per SEC filings.

Abercrombie & Fitch

One specialty retailer that insiders are active in here is Abercrombie & Fitch (ANF), which sells casual sportswear apparel. Insiders are buying this stock into slight strength, since shares are up around 1% in the last six months.

Abercrombie & Fitch has a market cap of $3.7 billion and an enterprise value of $3.2 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 15.51 and a forward price-to-earnings of 12.11. Its estimated growth rate for this year is 12.4%, and for next year it's pegged at 20.5%. This is a cash-rich company, since the total cash position on its balance sheet is $555.90 million and its total debt is $207.25 million. After you back out the debt, this company has $348.65 million in total cash on its balance sheet. This stock currently sports a dividend yield of 1.8%.

>>5 Stocks That Have Yet to Recover From the 2008 Crisis

A director just bought 10,000 shares, or about $440,000 worth of stock, at $43.98 per share.

From a technical perspective, ANF is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been uptrending for the last few weeks, with shares spiking higher from its low of $43.41 to its recent high of $48.72 a share. During that move, shares of ANF have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ANF within range of triggering a near-term breakout trade.

If you're bullish on ANF, then I would look for long-biased trades as long as this stock is trending above its 200-day at $44.94, and then once it breaks out above some near-term overhead resistance levels at $48.72 to its 50-day at $49.63 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 1.86 million shares. If that breakout triggers soon, then ANF will set up to re-test or possibly take out its next major overhead resistance levels at $52.25 to $55 a share.

Horsehead

Another basic materials player that insiders are loading up on here is Horsehead (ZINC), which is a zinc producer in the U.S. and manufactures value-added zinc products including zinc oxide and zinc powder. Insiders are buying this stock into decent strength, since shares are up 23% so far in 2013.

Horsehead has a market cap of $555 million and an enterprise value of $652 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 12.55. Its estimated growth rate for this year is 36.4%, and for next year it's pegged at 566.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $181.84 million and its total debt is $269.21 million.

>>5 Stocks Ready to Break Out

A beneficial owner just bought 212,553 shares, or about $2.54 million worth of stock, at $12 per share. That same beneficial owner also just bought 193,757 shares, or about $2.3 million worth of stock, at $11.87 per share.

From a technical perspective, ZINC 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 two months, with shares soaring higher from its low of $9.38 to its recent high of $13.14 a share. During that move, shares of ZINC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has started to push shares of ZINC within range of triggering a near-term breakout trade.

If you're in the bull camp on ZINC, then look for long-biased trades as long as this stock is trending above its 50-day at $11.64 and then once it breaks out above its 52-week high at $13.14 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 347,403 shares. If that breakout triggers soon, then ZINC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $16 to $18 a share.

Accenture

One business support services player that insiders are jumping into here is Accenture (ACN), a global management consulting, technology services and outsourcing company. Insiders are buying this stock into modest strength, since shares are up by 8.5% so far in 2013.

Accenture has a market cap of $46 billion and an enterprise value of $40 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 16.15 and a forward price-to-earnings of 15.96. Its estimated growth rate for this year is 9.6%, and for next year it's pegged at 7.4%. This is a cash-rich company, since the total cash position on its balance sheet is $5.94 billion and its total debt is zero. This stock currently sports a dividend yield of 2.3%.

>>5 Stock Charts You Need to See

The CEO just bought 20,000 shares, or about $1.43 million worth of stock, at $71.99 per share.

From a technical perspective, ACN is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply from $81 to its low of $69 with heavy downside volume. Following that move, shares of ACN have rebounded off that $69 low and it's starting to move within range of triggering a major breakout trade.

If you're bullish on ACN, then look for long-biased trades as long as this stock is trending above $71 and then once it breaks out above its 200-day moving average of $73.33 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 3.27 million shares. If that breakout triggers soon, then ACN will set up to re-fill some of its previous gap down zone that started at $81 a share. Some possible upside targets if CAN gets into that gap with volume are $76 to $78 a share.

Calamos Asset Management

One investment banking player that insiders are in love with here is Calamos Asset Management (CLMS), which provides investment advisory services to individuals & institutional investors through open-end funds, closed-end funds, separate accounts, offshore funds and partnerships. Insiders are buying this stock into modest weakness, since shares are off by 4.4% so far in 2013.

Calamos Asset Management has a market cap of $217 million and an enterprise value of $199 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 15.16 and a forward price-to-earnings of 17.15. Its estimated growth rate for this year is -30.7%, and for next year it's pegged at 1.6%. This is a cash-rich company, since the total cash position on its balance sheet is $506.60 million and its total debt is $92.11 million. This stock currently sports a dividend yield of 4.8%.

>>5 Financial Stocks to Trade Now

The CEO just bought 19,112 shares, or about $199,000 worth of stock, at $10.42 per share.

From a technical perspective, CLMS is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $10.22 on the downside and $11.14 on the upside. Shares of CLMS are now starting to move within range of triggering a breakout trade above the upper-end of its recent range.

If you're bullish on CLMS, then look for long-biased trades as long as this stock is trending above its 200-day at $10.55 or above some more near-term support at $10.22, and then once it breaks out above some near-term overhead resistance levels at $11 to $11.14 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 175,414 shares. If that breakout hits soon, then CLMS will set up to re-test or possibly take out its next major overhead resistance levels at $11.72 to $12.12 a share. Any high-volume move above those levels will then put $13 to $14 into range for shares of CLMS.

Opko Health

One final name with some decent insider buying is Opko Health (OPK), a biopharmaceutical and diagnostics company engaged in the development and commercialization of pharmaceutical products, vaccines, diagnostic technologies, and imaging systems. Insiders are buying this stock into big-time strength, since shares are up sharply by 51% so far in 2013.

Opko Health has a market cap of $2.45 billion and an enterprise value of $2.43 billion. This stock trades at a premium valuation, with a price-to-sales of 35.20 and a price-to-book of 7.64. Its estimated growth rate for this year is -154.5%, and for next year it's pegged at 25%. This is not a cash-rich company, since the total cash position on its balance sheet is $181.60 million and its total debt is $220.39 million.

>>4 Big Stocks on Traders' Radars

The CEO just bought 20,000 shares, or about $138,000 worth of stock, at $6.89 per share. The same CEO also just bought 13,000 shares, or about $92,000 worth of stock, at $7.09 per share.
From a technical perspective, OPK is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last month, with shares moving higher from its low of $6.14 to its recent high of $7.48 a share. During that move, shares of OPK have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of OPK within range of triggering a major breakout trade.

If you're bullish on OPK, then look for long-biased trades as long as this stock is trending above its 50-day at $6.85 or above some more key near-term support at $6.50, and then once it breaks out above some near-term overhead resistance levels at $7.48 to $7.70 a share and then once it takes out its 52-week high at $7.83 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 1.61 million shares. If that breakout triggers soon, then OPK 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 Delafield, Wis.

RELATED LINKS:

>>4 Red-Flag Stocks to Sell This Summer
>>5 Stocks Under $10 Set to Soar

>>3 Hot Stocks to Trade (or Not)

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, 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.