Stock Quotes in this Article: HBAN, HLF, JPM, ADNC, RFP

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

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Herbalife

One global network marketing player that insiders are buying a huge amount of stock in here is Herbalife (HLF), which sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. Insiders are buying this stock into notable strength, since shares are up 30% so far in 2013.

Herbalife has a market cap of $4.4 billion and an enterprise value of $4.4 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 10.09 and a forward price-to-earnings of 7.90. Its estimated growth rate for this year is 17.8%, and for next year it's pegged at 14.5%. This is not a cash-rich company, since the total cash position on its balance sheet is $722.47 million and its total debt is $976.52 million. This stock sports a dividend yield of 2.9%.

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Billionaire hedge fund manager Carl Icahn, who is also a beneficial owner, just bought 611,354 shares, or $24.97 million worth of stock, at $40.85 per share. This purchase by Icahn raised his stake in Herbalife to 16.48% from 15.5%.

From a technical perspective, HLF is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $34.72 to its recent high of $44.60 a share. During that move, shares of HLF have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HLF within range of triggering a major breakout trade.

If you're bullish on HLF, then I would look for long-biased trades as long as this stock is trending above some key near-term support at $40 and then once it breaks out above both its 200-day at $43.92 and some more key resistance levels at $44.60 to $45.70 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 3.82 million shares. If we get that breakout, then HLF will set up to re-test or possibly take out its next major overhead resistance levels at $47.16 to $47.45 a share. Any high-volume move above those levels will then put $53.50 to $56.50 into range for shares of HLF.

JPMorgan Chase

Another global financial and banking services player that insiders are gobbling up a large amount of stock in here is JPMorgan Chase (JPM). Insiders are buying this stock into modest strength, since shares are up 12.9% so far in 2013.

JPMorgan Chase has a market cap of $190 billion and an enterprise value of $41 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 8.91 and a forward price-to-earnings of 8.40. Its estimated growth rate for this year is 8.8%, and for next year it's pegged at 4.9%. This is a cash-rich company, since the total cash position on its balance sheet is $952.49 billion and its total debt is $722.93 billion. After you back out the debt, JPMorgan Chase has a total cash position of $229.56 billion on its balance sheet. This stock sports a dividend yield of 3.2%.

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A director just bought 301,477 shares, or about $14.25 million worth of stock, at $47.29 per share.

From a technical perspective, JPM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has started to enter breakout territory today, since shares are trending above some near-term overhead resistance levels at $49.60 to $49.63 a share. That move is quickly pushing shares of JPM within range of triggering an even bigger breakout trade.

If you're in the bull camp on JPM, then look for long-biased as long as this stock is trending above its 50-day at $48.59, and then once it breaks out above some near-term overhead resistance levels at $$50.68 to its 52-week high at $51 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 23.56 million shares. If that breakout triggers soon, then JPM will set up to enter new 52-week-high territory above $51, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60 a share.

Audience

One stock that key insiders are jumping into here is Audience (ADNC), which is a provider of intelligent voice and audio solutions that improve voice quality and the user experience in mobile devices. Insiders are buying this stock into big time strength, since shares are up 44.6% so far in 2013.

This company recently forecasted earnings and revenue that were largely above Wall Street estimates, helped by strong demand from its biggest customer, Samsung, which uses its chips in its new Galaxy S4 smartphone. The company said it expects to earn between 15 cents and 19 cents per share on an adjusted basis on revenue of $43 million to $46 million in the second quarter.

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Audience has a market cap of $312 million and an enterprise value of $167 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 23.07 and a forward price-to-earnings of 26.70. Its estimated growth rate for this year is -42%, and for next year it's pegged at 9.8%. This is a cash-rich company, since the total cash position on its balance sheet is $127.64 million and its total debt is just $5.29 million.

The CFO just bought 25,000 shares, or about $349,000 worth of stock, at $13.95 per share.

From a technical perspective, ADNC is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has just started to trend back above its 50-day and it's now quickly moving within range of triggering a major breakout trade.

If you're bullish on ADNC, then look for long-biased trades as long as this stock is trending above $14 or its 50-day at $14.61 and then once it breaks out back above some near-term overhead resistance levels at $15.90 to $16.45 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 208,185 shares. If that breakout triggers soon, then ADNC will set up to re-fill some of its previous gap down zone from last September that started near $20 a share.

Huntington Bancshares

A multi-state diversified regional banking player that insiders are snapping up shares in here is Huntington Bancshares (HBAN). Insiders are buying this stock into decent strength, since shares are up by 16.2% so far in 2013.

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Huntington Bancshares has a market cap of $6.2 billion and an enterprise value $7.1 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 10.47 and a forward price-to-earnings of 10.62. Its estimated growth rate for this year is -5.6%, and for next year it's pegged at 4.5%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.41 billion and its total debt is $2.47 billion. This stock sports a dividend yield of 2.8%.

A director just bought 100,000 shares, or about $711,000 worth of stock, at $7.12 per share.

From a technical perspective, HBAN 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 six months, with shares soaring higher from its low of $5.74 to its recent high of $7.55 a share. During that uptrend, shares of HBAN have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HBAN within range of triggering a major breakout trade.

If you're bullish on HBAN, then look for long-biased trades as long as this stock is trending above some key near-term support at $7 or above its 50-day at $7.26, and then once it breaks out above some near-term overhead resistance levels at $7.51 to its 52-week high at $7.55 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 10.13 million shares. If that breakout triggers soon, then HBAN will set up to enter new 52-week-high territory above $7.55, which is bullish technical price action. Some possible upside targets off that breakout are $9.50 to $10 a share.

Resolute Forest Products

One more stock with some decent insider buying is Resolute Forest Products (RFP), which provides a range of products, including newsprint, commercial printing papers, market pulp and wood products. Insiders are buying this stock into notable strength, since shares are up 21% so far in 2013.

Resolute Forest Products has a market cap of $1.5 billion and an enterprise value of $1.7 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 15.15. Its estimated growth rate for this year is 0%, and for next year it's pegged at 30.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $263 million and its total debt is $534 million.

A beneficial owner just bought 3,380,000 shares, or about $48.16 million worth of stock, at $14.25 per share.

From a technical perspective, RFP is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently put in a double bottom chart pattern at $13.92 to $13.98 a share, and then the stock subsequently soared back above its 50-day and broke out above some key near-term overhead resistance levels at $14.76 to $15.73 a share. That move is quickly pushing shares of RFP within range of triggering another major breakout trade.

If you're bullish on RFP, then look for long-biased trades as long as this stock is trending above its 50-day at $14.97 or above $14 and then once it breaks out above some key overhead resistance levels at $17.54 to $18.20 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 439,516 shares. If that breakout triggers soon, then RFP will set up to re-test or possibly take out its next major overhead resistance levels at $20 to $22 a share, or even $25 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.