Stock Quotes in this Article: ACCL, JBL, OFG, TTGT, BTX

DELAFIELD, Wis. (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.

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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, it's 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 five stocks that insiders have been doing some big buying in per SEC filings.

BioTime

One health care player that insides are loading up in here is BioTime (BTX), a biotechnology company, which focuses on regenerative medicine and blood plasma volume expanders. Insiders are buying this stock into modest strength, since shares are up 13% in 2013.

BioTime has a market cap of $198 million and an enterprise value of $189 million. This stock trades at a premium valuation, with a price-to-sales of 51.42 and a price-to-book of 14.94. This is a cash-rich company, since the total cash position on its balance sheet is $6.72 million and its total debt is zero.

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A director just bought 300,042 shares, or about $1.05 million worth of stock, at $3.49 per share.

From a technical perspective, BTX 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 moving lower from its high of $4.18 to its recent low of $3.25 a share. During that move, shares of BTX have been consistently making lower highs and lower lows, which is bearish. That said, shares of BTX have now started to rebound higher off that $3.25 low, and the stock is quickly moving within range of triggering a near-term breakout trade.

If you're bullish on BTX, then I would look for long-biased trades as long as this stock is trending above its recent low of $3.25 and then once breaks out above some near-term overhead resistance levels at $3.60 a share to its 50-day at $3.74 and its 200-day at $3.88 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 175,009 shares. If that breakout hits soon, then BTX will set up to re-test or possibly take out its next major overhead resistance levels at $4.10 to $4.18 a share.

Accelrys

Another stock that insiders are jumping into here is Accelrys (ACCL), which develops and commercializes scientific business intelligence software and solutions in the U.S., Europe and the Asia Pacific. . Insiders are buying this stock into modest strength, since shares are up 6.5% in 2013.

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Accelrys has a market cap of $536 million and an enterprise value of $428 million. This stock trades at a reasonable valuation, with a price-to-sales of 3.21 and a price-to-book of 2.15. This is a cash-rich company, since the total cash position on its balance sheet is $103.42 million and its total debt is zero.

A beneficial owner just bought 18,893 shares, or about $179,000 worth of stock, at $9.50 per share.

From a technical perspective, ACCL 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 $8.68 to its recent high of $9.75 a share. During that uptrend, shares of ACCL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ACCL within range of triggering a major breakout trade.

If you're in the bull camp on ACCL, then I would look for long-biased trades as long as this stock is trending above its 50-day at $9.35 or above its 200-day at $9.15, and then once it breaks out above some near-term overhead resistance levels at $9.75 to $9.79, and then once it clears $9.96 to its 52-week high at $10 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 119,620 shares. If that breakout hits soon, then ACCL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15 a share.

Techtarget

One technology player that insiders are active in here is Techtarget (TTGT), which provides specialized online content that brings together buyers and sellers of corporate IT products. Insiders are buying this stock into solid strength, since shares are up notably by 21% in 2013.

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Techtarget has a market cap of $213 million and an enterprise value of $173 million. This stock trades at a reasonable valuation, with a price-to-sales of 2.33 and a price-to-book of 1.34. This is a cash-rich company, since the total cash position on its balance sheet is $42.15 million and its total debt is zero.

An officer just bought 10,000 shares, or $50,000 worth of stock, at $5.04 per share. That same officer also just bought 10,000 shares, or $50,000 worth of stock, at $5.04 per share.

From a technical perspective, TTGT 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 four months, with shares soaring higher from its low of $4.32 to its recent high of $7.10 a share. During that uptrend, shares of TTGT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TTGT within range of triggering a near-term breakout trade.

If you're bullish on TTGT, then I would look for long-biased trades as long as this stock is trending above some key near-term support levels at $6.55 or above $6, and then once it breaks out above some near-term overhead resistance at its 52-week high of $7.10 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 volume of 40,417 shares. If that breakout hits soon, then TTGT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $7.88 to $8. Any high-volume move above those levels will then give TTGT a chance to tag $9 to $10 a share.

Jabil Circuit

One semiconductor player that insiders are snapping up a decent amount of stock in here is Jabil Circuit (JBL), together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. Insiders are buying this stock into modest weakness, since shares are off by 11.8% in 2013.

Jabil Circuit has a market cap of $3.49 billion and an enterprise value of $4.51 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 9.19 forward price-to-earnings of 10.24. Its estimated growth rate for this year is -50.9%, and for next year it's pegged at 49.5%. This is not a cash-rich company, since the total cash position on its balance sheet is $769.22 million and its total debt is $1.80 billion. This stock currently sports a dividend yield of 1.9%.

A director just bought 6,500 shares, or about $104,000 worth of stock, at $16.11 per share.

From a technical perspective, JBL is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down sharply from $19.94 to $15.30 a share with heavy downside volume. Following that gap down, shares of JBL have started to rebound sharply, with the stock moving higher from $15.30 to its recent high of $17.26 a share. That move has now pushed shares of JBL within range of triggering a near-term breakout trade.

If you're bullish on JBL, then I would look for long-biased trades as long as this stock is trending above some key near-term support levels at $16.50 or at $16, and then once it breaks out above some key overhead resistance at $17.26 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 volume of 3.40 million shares. If that breakout hits soon, then JBL will set up to re-fill some of its previous gap down zone that started at $19.94 a share.

OFG Bancorp

One final name with some notable insider buying is OFG Bancorp (OFG), a financial holding company, which provides various banking and financial services primarily in Puerto Rico. Insiders are buying this stock into solid strength, since shares are up 28% in 2013.

OFG Bancorp has a market cap of $786 million and an enterprise value of $1.8 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 17.51 and a forward price-to-earnings of 9.69. Its estimated growth rate for this year is 420%, and for next year it's pegged at -2.20%. This is not a cash-rich company, since the total cash position on its balance sheet is $765.99 million and its total debt is $1.74 billion. This stock currently sports a dividend yield of 1.9%.

The CEO just bought 2,000 shares, or about $44,000 worth of stock, at $22.12 per share.

From a technical perspective, OFG is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently pulled back to its 50-day moving average and found buying interest. Shares of OFG have now bounced off its 50-day and trended back above its 200-day moving average. That move has now pushed shares of OFG within range of triggering a near-term breakout trade.

If you're bullish on OFG, then look for long-biased trades as long as this stock is trending above its 50-day at $16.25 or above more support at $15.92, and then once it breaks out above some near-term overhead resistance at $17.47 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 343,478 shares. If that breakout triggers soon, then OFG will set up to re-test or possibly take out its next major overhead resistance levels at $18.50 to its 52-week high at $19.33 a share. Any high-volume move above $19.33 will then give OFG a chance to trend north of $20 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.


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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.