Stock Quotes in this Article: END, LYV, NBY, OMER, GEVA

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

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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, 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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Endeavour

One independent oil and gas player that insiders are jumping into here is Endeavour (END). This company is engaged in the production, exploration, development and acquisition of crude oil and natural gas in the U.K. North Sea and U.S. Onshore. Insiders are buying this stock into some notable weakness, since shares are down by 35% in the last three months.

Endeavour has a market cap of $277 million and an enterprise value of $1.03 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 9.31. Its estimated growth rate for this year is -61%, and for next year it's pegged at 128.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $75.72 million and its total debt is $825.43 million.

A beneficial owner just bought 337,979 shares, or $1.83 million worth of stock, at $5.40 per share.

From a technical perspective, END is currently trending below both its 50-day and 200-day moving averages. This stock has been downtrending badly for the last four months, with shares dropping from $10.48 to its recent low of $4.66 a share. During that downtrend, shares of END have been mostly making lower highs and lower lows, which is bearish technical price action. That said, the stock has recently started to rebound off that $4.66 low and move within range of triggering a near-term breakout trade.

If you're bullish on END, then I would look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $6.22 to $6.61 a share and then once it takes out more overhead resistance levels at $6.91 to $7.19 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 773,839 shares. If that breakout hits soon, then END will set up to re-test or possibly take out its next major overhead resistance levels at $8 to its 200-day moving average at $8.40 a share.

Synageva BioPharma

Another name in the biopharmaceutical complex that insiders are snapping up here is Synageva BioPharma (GEVA). This company is focused on the discovery, development, and commercialization of therapeutic products for patients with life-threatening rare diseases and unmet medical need. Insiders are buying this stock into some decent strength, since shares are up 19% in the last six months.

Synageva BioPharma has a market cap of $1.19 billion and an enterprise value of $943 million. This stock trades at a premium valuation, with a price-to-sales of 100.66 and a price-to-book of 4.84. Its estimated growth rate for this year is 78.6%, and for next year it's pegged at -46.7%. This is a cash-rich company, since the total cash position on its balance sheet is $233.41 million and its total debt is zero.

A director and beneficial owner just bought 859,720 shares, or about $40.86 million worth of stock, at $47.53 per share.

From a technical perspective, GEVA is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has just started to bounce right above its 50-day moving average of $46.93 a share. That move is quickly pushing shares of GEVA within range of triggering a major breakout trade.

If you're in the bull camp on GEVA, then I would look for long-biased if this stock manages to break out above some near-term overhead resistance levels at $51.90 to $52.75 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 137,157 shares. If that breakout triggers soon, then GEVA will set up to re-test or possibly take out its next major overhead resistance levels at $56 to $58 a share. Keep in mind that any move above $58 would then push GEVA into new 52-week high territory, which is bullish technical price action.

Omeros

One name in the biopharmaceutical complex that insiders are warming up to here is Omeros (OMER). This company is engaged in discovering, developing and commercializing products focused on inflammation and disorders of the central nervous system. Insiders are buying this stock into extreme weakness, since shares are off by 36% in the last six months.

Omeros has a market cap of $165 million and an enterprise value of $146 million. This stock trades at a premium valuation, with a price-to-sales of 28.98. Its estimated growth rate for this year is -22.5%, and for next year it's pegged at 22.2%. This is a cash-rich company, since the total cash position on its balance sheet is $30.63 million and its total debt is $15.05 million.

A director just bought 40,000 shares, or about $228,000 worth of stock, at $5.72 per share.

From a technical perspective, OMER 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 two months and change, with shares dropping from $11.85 to its recent low of $5.08 a share. During that downtrend, shares of OMER have been mostly making lower highs and lower lows, which is bearish technical price action. That said, OMER has recently started to bounce off that $5.08 low and move within range of triggering a near-term breakout trade.

If you‘re bullish on OMER, then I would look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $7.12 to $7.35 a share and then once it takes out more overhead resistance at $7.91 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 205,882 shares. If that breakout hits soon, then OMER will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $9.17 to $9.95 a share.

Live Nation

One entertainment player that insiders are loading up on here is Live Nation (LYV). This is a producer of live music concerts. Globally, the company owns, operates, has booking rights for and/or has an equity interest in 128 venues, including House of Blues music venues and prestigious locations. Insiders are buying this stock into modest strength, since shares are up 14.7% in the last three months.

Live Nation has a market cap of $1.88 billion and an enterprise value $2.82 billion. This stock trades at a cheap valuation, with a price-to-sales of 0.33 and a price-to-book of 1.24. Its estimated growth rate for this year is 19.6%, and for next year it's pegged at 73%. This is not a cash-rich company, since the total cash position on its balance sheet is $783.67 million and its total debt is $1.75 billion.

A beneficial owner and director just bought 1,670,379 shares, or around $15 million worth of stock, at $8.98 to $9.31 per share.

From a technical perspective, LYV is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strongly for the last two months, with shares moving higher from $8.39 to its recent high of $10.12 a share. During that uptrend, shares of LYV have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LYV within range of triggering a near-term breakout trade.

If you're in the bull camp on LYV, then I would look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $10.12 a share with high volume. Look for a sustained move or close above $10.12 a share with volume that registers near or above its three-month average action of 871,951 shares. If that breakout triggers soon, then LYV will set up to re-test or possibly take out its next major overhead resistance levels at $10.99 to $11.50 a share.

Novabay Pharmaceutical

One final name to consider with some decent insider buying is Novabay Pharmaceutical (NBY). This is a clinical stage pharmaceutical company engaged in the discovery and development of innovative product candidates for the treatment or prevention of a range of infections in hospital and non-hospital environments. Insiders are buying this stock into modest weakness, since shares are off by 10% in the last three months.

Novabay Pharmaceutical has a market cap of $35 million and an enterprise value of $22 million. This stock trades at a fair valuation, with a price-to-sales of 4.86 and a price-to-book of 4.60. Its estimated growth rate for this year is -35%, and for next year it's pegged at 11.1%. This is a cash-rich company, since the total cash position on its balance sheet is $11.88 million and its total debt is zero.

The president and beneficial owner just bought 120,000 shares, or about $144,000 worth of stock, at $1.20 per share.

From a technical perspective, NBY 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 dropping from $1.76 to its recent low of $1.05 a share. During that downtrend, shares of NBY have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of NBY have started to rebound off that $1.05 low and move within range of triggering a near-term breakout trade.

If you're bullish on NBY, then I would look for long-biased if this stock manages to break out above some near-term overhead resistance levels at $1.21 to $1.28 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 244,079 shares. If that breakout triggers soon, then NBY will set up to re-fill its previous gap down zone from last December that started above $1.35 a share. If that gap gets filled, then NBY could trade up towards $1.45 to $1.55 a share.

To see more stocks with notable insider buying like Vanguard Natural Resources (VNR), GIII Apparel (GIII) and Opko Health (OPK), check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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

Roberto Pedone, based out of Windermere, Fla., 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.