Stock Quotes in this Article: CHCI, CVM, USAK, AXDX, WHLR

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

USA Truck

One stock that insiders are in love with here is USA Truck (USAK), a truckload carrier providing transportation of general commodities throughout the continental U.S., into and out of Mexico and into and out of portions of Canada. Insiders are buying this stock into major strength, since shares are up large by 114% during the last six months.

USA Truck has a market cap of $140 million and an enterprise value of $278 million. This stock trades at a premium valuation, with a forward price-to-earnings of 45.77. Its estimated growth rate for this year is 72%, and for next year it's pegged at 168.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $8,000 and its total debt is $142.43 million.

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A beneficial owner just bought 50,000 shares, or about $644,095 worth of stock, at $12.88 per share.

From a technical perspective, USAK 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 over the last two months, with shares dropping from its high of $16.38 to its low of $11.95. During that downtrend, shares of USAK have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of USAK have now started to bounce off their $11.95 low and it's quickly moving within range of triggering a near-term breakout trade.

If you're bullish on USAK, then I would look for long-biased trades as long as this stock is trending above some near-term support at $11.95 and then once breaks out above its 50-day moving average of $13.97 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 161,165 shares. If that breakout hits soon, then USAK will set up to re-test or possibly take out its next major overhead resistance levels at $14.54 to $15.28 a share. Any high-volume move above those levels will then give USAK a chance to re-test or possibly take out its 52-week high at $16.38 a share.

Accelerate Diagnostics

Another medical equipment player that insiders are active in here is Accelerate Diagnostics (AXDX), which engages in the research and development and commercialization of proprietary surface chemistry formulation and quantitative bio-analytical measurement instruments. Insiders are buying this stock into major strength, since shares are up 51% during the last six months.

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Accelerate Diagnostics has a market cap of $520 million and an enterprise value of $436 million. This stock trades at a premium valuation, since its price-to-book is 11.82. This is a cash-rich company, since the total cash position on its balance sheet is $44.41 million and its total debt is zero.

A beneficial owner just bought 84,081 shares, or about $1.03 million worth of stock, at $12.29 per share.

From a technical perspective, AXDX 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 uptrending a bit over the last few trading sessions, with shares moving higher from its low of $11.01 to its recent high of $13.14 a share. During that uptrend, shares of AXDX have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AXDX within range of triggering a near-term breakout trade.

If you're in the bull camp on AXDX, then I would look for long-biased trades as long as this stock is trending above some near-term support at $11.01 and then once it breaks out above its 50-day moving average of $13.03 and some more near-term resistance at $13.14 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 98,427 shares. If that breakout triggers soon, then AXDX will set up to re-test or possibly take out its next major overhead resistance levels at $14.48 to $14.92 a share. Any high-volume move above those levels will then give AXDX a chance to tag its 52-week high at $16.45 a share.

Wheeler Real Estate Investment Trust

One REIT player that insiders are jumping into here is Wheeler Real Estate Investment Trust (WHLR), which engages in acquiring, financing, developing, leasing, owning and managing real estate properties. Insiders are buying this stock into notable weakness, since shares are of by 14.2% during the last six months.

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Wheeler Real Estate Investment Trust has a market cap of $31.43 million and an enterprise value of $96.15 million. This stock trades at a reasonable valuation, with a price-to-book of 5.15 and a price-to-sales of 1.77. This is not a cash-rich company, since the total cash position on its balance sheet is $1.82 million and its total debt is $66.78 million.
The CEO just bought 235,000 shares, or about $982,000 worth of stock, at $4.18 per share.

From a technical perspective, WHLR 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 and change, with shares moving higher from its low of $3.69 to its intraday high of $4.66 a share. During that uptrend, shares of WHLR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WHLR within range of triggering a big breakout trade.

If you're bullish on WHLR, then I would look for long-biased trades as long as this stock is trending above its 50-day moving average of $4.22 or above more support at $4.03 and then once it breaks out above some near-term overhead resistance levels at $4.60 to $4.66 a share and above its 200-day moving average of $4.83 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 volume of 27,683 shares. If that breakout hits soon, then WHLR will set up to re-test or possibly take out its next major overhead resistance levels at $5.24 to $5.50 a share. Any high-volume move above those levels will then give WHLR a chance to tag $6 a share.

Comstock Holding

One financial player that insiders are loading up on here is Comstock Holding (CHCI), which operates as a real estate development and services company in the U.S. Insiders are buying this stock into modest weakness, since shares are off 5.9% during the last six months.

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Comstock Holding has a market cap of $39.64 million and an enterprise value of $64.39 million. This stock trades at a reasonable valuation, with a price-to-sales of 1.08 and a price-to-book of 7.45. This is not a cash-rich company, since the total cash position on its balance sheet is $4.19 million and its total debt is $26.44 million.

A beneficial owner just bought 93,900 shares, or about $178,000 worth of stock, at $1.84 to $1.97 per share.

From a technical perspective, CHCI is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending over the last month, with shares moving higher from its low of $1.62 to its recent high of $2.20 a share. During that uptrend, shares of CHCI have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CHCI within range of triggering a major breakout trade.

If you're bullish on CHCI, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $1.84 or at $1.70 and then once it breaks out above some key near-term overhead resistance levels at $2.09 to $2.20 a share and above its 200-day moving average of $2.29 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 volume of 69,092 shares. If that breakout hits soon, then CHCI will set up to re-test or possibly take out its next major overhead resistance levels at $2.79 to $3.05. Any high-volume move above those levels will then give CHCI a chance to tag its 52-week high at $3.65 a share.

CEL-SCI

One final stock with some decent insider buying is CEL-SCI (CVM), which is engaged in the research and development of drugs and vaccines. The company's lead investigational immunotherapy is Multikine, which is under pivotal phase III clinical trial for the treatment of primary head and neck cancer. Insiders are buying this stock into major weakness, since shares are off by 65% during the last six months.

CEL-SCI has a market cap of $36.57 million and an enterprise value of $33.43 million. This stock trades at a premium valuation, with a price-to-sales of 227.56 and a price-to-book of 3.38. Its estimated growth rate for this year is -73.3, and for next year it's pegged at 1.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $41,000 and its total debt is $1.13 million.

The CEO just bought 300,000 shares, or $180,000 worth of stock, at 60 cents per share.
From a technical perspective, CVM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of 53 cents per share to its recent high of 76 cents per share. During that uptrend, shares of CVM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CVM within range of triggering a near-term breakout trade.

If you're bullish on CVM, then look for long-biased trades as long as this stock is trending above some near-term support at 65 cents per share and then once it breaks out above its 50-day moving average of 75 cents per share to more resistance at 76 cents per 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 831,049 shares. If that breakout triggers soon, then CVM will set up to re-test or possibly take out its next major overhead resistance levels at 82 to 83 cents per share, or even 90 cents per 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.