Stock Quotes in this Article: AGCO, CORT, IGT, PENN, STEC

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? 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.

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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.

Agco

One capital goods player that insiders are buying a huge amount of stock in here is Agco . This company is a manufacturer and distributor of agricultural equipment and related replacement parts worldwide. Insiders are buying this stock into some modest strength, since shares are up just over 5% so far in 2012.

Agco has a market cap of $4.40 billion and an enterprise value of $5.49 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 6.35 and a forward price-to-earnings of 8.16. Its estimated growth rate for this year is 17.2%, and for next year it's pegged 5.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $321.90 million and its total debt is $1.41 billion

A director just bought 160,940 shares, or about $7.29 million worth of stock, at $45.08 to $45.60 per share.

From a technical perspective, AGCO 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 downtrending for the last two months, with shares dropping from a high of $49.90 to its recent low of $42.48 a share. During that downtrend, shares of AG9CO have been mostly making lower highs and lower lows, which is bearish technical price action. That said, the stock has just started to rebound back above its 200-day and its moving within range of triggering a near-term breakout trade.

If you're bullish on AGCO, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $45.90 to $47.25 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 1,110,740 shares. If that breakout triggers soon, then AGCO will set up to re-test or possibly take out its next major overhead resistance level at $49.90 a share.

Penn National Gaming

Another name in the casinos and gaming complex that insiders are loading up on here is Penn National Gaming . This is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. Insiders are buying this stock into decent strength, since shares are up by 26% so far in 2012.

Penn National Gaming has a market cap of $3.66 billion and an enterprise value of $5.61 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 21.55 and a forward price-to-earnings of 16.88. Its estimated growth rate for this year is 8.5%, and for next year it's pegged at 24%. This is not a cash-rich company, since the total cash position on its balance sheet is $217.43 million and its total debt is $2.18 billion.

The CFO just bought 43,000 shares, or about $2.01 million worth of stock, at $46.89 per share.

From a technical perspective, PENN is currently trending well above both its 50-day and 200-day moving averages, which is bullish. This stock recently gapped up huge from $37 to $50.50 a share with massive upside volume. Following that move, shares of PENN have been trending sideways with the stock moving between $49 and $45.48 a share. A high-volume move outside of that range soon will likely lead to the next major trend for shares of PENN.

If you're in the bull camp on PENN, then I would look for long-biased once this stock manages to break out above some near-term overhead resistance levels at $49 to $50.50 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 890,463 shares. If that breakout triggers, then PENN will set up to re-test to enter new 52-week high territory, which is bullish technical price action. Some possibly upside targets are $55 to $60.

International Game Technology

One name in the casinos and gaming complex that insiders are snapping up a decent amount of stock in is International Game Technology . This company is engaged in the design, manufacture, and marketing of electronic gaming equipment and systems products. Insiders are buying this stock into weakness, since shares are off by 20% so far in 2012.

International Game Technology has a market cap of $3.64 billion and an enterprise value of $5.23 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 16.01 and a forward price-to-earnings of 10.59. Its estimated growth rate for this year is 16.3%, and for next year it's pegged at 5.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $206.30 million and its total debt is $1.85 billion.

A director just bought 37,750 shares, or about $500,000 worth of stock, at $13.25 per share.

From a technical perspective, IGT 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 trending sideways for the last two months and change, with shares moving between $12 on the downside and $13.85 on the upside. A high-volume move outside of that range will likely lead to the next major trend for shares of IGT.

If you‘re bullish on IGT, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $13.85 to its 200-day at $14.06 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 4,015,040 shares. If that breakout triggers soon, then IGT will set up to re-test or possibly take out its next major overhead resistance levels at $15.67 to $16 a share.

Corcept Therapeutics

Another name that insiders are warming up to here is Corcept Therapeutics . This is a pharmaceutical company, engaged in the discovery and development of drugs for the treatment of severe metabolic and psychiatric disorders. Insiders are buying this stock into some extreme weakness, since shares are down by close to 60% so far in 2012.

Corcept Therapeutics has a market cap of $137.74 million and an enterprise value $67.99 million. This stock trades at a premium valuation, with a price-to-sales of 71.89 and a price-to-book of 1.94. Its estimated growth rate for this year is 7.7%, and for next year it's pegged at 19.4%. This is a cash-rich company, since the total cash position on its balance sheet is $101.63 million and its total debt is $30.58 million.

A director just bought 179,000 shares, or about $248,000 worth of stock, at $1.38 to $1.40 per share.

From a technical perspective, CORT is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last six months, with shares plunging from a high of $4.51 to a recent low of $1.27 a share. During that downtrend, shares of CORT have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of CORT have started to stabilize around $1.28 to $1.27 a share and it's moving within range of triggering a near-term breakout trade.

If you're in the bull camp on CORT, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $1.48 to $1.60 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 387,469 shares. If that breakout triggers soon, then CORT will set up for a powerful bounce back towards $1.90 to $2.01 a share or possible even its 50-day at $2.23 a share.

Stec

The last name to consider with some notable insider buying is computer storage devices player Stec . This is a global provider of enterprise-class Flash solid-state drives that are designed to increase the performance of enterprise-storage systems and servers that companies use to retain and access their critical data. Insiders are buying this stock into some extreme weakness, since shares are down by 44% so far in 2012.

Stec has a market cap of $220.08 million and an enterprise value of $38.09 million. This stock trades at a reasonable valuation, with a price-to-sales of 1.17 and a price-to-book of 0.92. Its estimated growth rate for this year is -242.9%, and for next year it's pegged at -2%. This is a cash-rich company, since the total cash position on its balance sheet is $186.20 million and its total debt is zero.

A director just bought 137,665 shares, or around $593,000 million worth of stock, at $4.07 to $4.50 per share.

From a technical perspective, STEC is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last six months, with shares plunging from over $8 to its recent low of $3.95 a share. During that downtrend, shares of STEC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of STEC have started to bounce hard off $3.95 and its moving within range of triggering a near-term breakout trade.

If you're bullish on STEC, then I would look for long-biased once this stock manages to break out above some near-term overhead resistance at $4.99 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 608,956 shares. If that breakout triggers soon, then STEC will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to its 50-day at $5.84 a share. Any move above $5.84 will then put $6 to $6.50 into focus for shares of STEC.

To see more stocks with notable insider buying like Kansas City Southern , Jack in the Box and Pacific Biosciences of California (PACB), 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.