Stock Quotes in this Article: BCPC, SANW, SYRG, TSRA, RHP

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

>>5 Health Care Stocks to Trade for Gain

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.

>>5 Stocks Ready to Break Out

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.

>>5 Stocks Set to Soar on Bullish Earnings

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.

Synergy Resources

One energy player that insiders are active in here is Synergy Resources (SYRG), acquires, explores, develops, produces and exploits crude oil and natural gas properties primarily located in the Wattenberg field in Denver-Julesburg Basin in northeast Colorado. Insiders are buying this stock into notable weakness, since shares down 13.6% during the last three months.

Synergy Resources has a market cap of $716 million and an enterprise value of $631 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 46.04 and a forward price-to-earnings of 11.77. Its estimated growth rate for this year is 150%, and for next year it's pegged at 80%. This is a cash-rich company, since the total cash position on its balance sheet is $61.01 million and its total debt is $37 million.

>>5 Rocket Stocks to Buy for a Short Trading Week

A director just bought 34,415 shares, or about $299,000 worth of stock, at $8.64 per share.

From a technical perspective, SYRG is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been downtrending over the last two months and change, with shares moving lower from its high of $11.40 to its recent low of $8.11 a share. During that move, shares of SYRG have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of SYRG have just started to trend back above its 50-day moving average and it's quickly moving within range of triggering a major breakout trade above a key downtrend line.

If you're bullish on SYRG, then I would look for long-biased trades as long as this stock is trending above its 200-day at $8.42 and then once breaks out above some key near-term overhead resistance levels at $9.95 to $10.16 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 583,897 shares. If that breakout hits soon, then SYRG will set up to re-test or possibly take out its next major overhead resistance levels at $11 to its 52-week high at $11.40 a share.

Ryman Hospitality Properties

Another REIT player that insiders are jumping into here is Ryman Hospitality Properties (RHP), which owns and operates hotels in the U.S. Insiders are buying this stock into decent strength, since shares are up 16.5% in the last three months.

>>4 Big Stocks to Trade (or Not)

Ryman Hospitality Properties has a market cap of $2.1 billion and an enterprise value of $3.2 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 37.50 and a forward price-to-earnings of 32.52. Its estimated growth rate for this year is 414.3%, and for next year it's pegged at -23.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $52.09 million and its total debt is $1.17 billion. This stock currently sports a dividend yield of 4.7%.

The CEO just bought 5,424 shares, or about $235,000 worth of stock, at $43.45 per share.

From a technical perspective, RHP 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 and change, with shares moving higher from its low of $32.11 to its recent high of $43.76 a share. During that uptrend, shares of RHP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RHP within range of triggering a near-term breakout trade.

If you're in the bull camp on RHP, then I would look for long-biased trades as long as this stock is trending above its 50-day at $41.58 and then once it breaks out above some near-term overhead resistance at $43.76 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 649,602 shares. If that breakout triggers soon, then RHP will set up to re-test or possibly take out its 52-week high at $48.35 a share. Any high-volume move above that level will then give RHP a chance to trend north of $50 a share.

Tessera Technologies

One semiconductor player that insiders are in love with here is Tessera Technologies (TSRA), which through its subsidiaries, develops, licenses, and delivers miniaturization technologies and products for electronic devices worldwide. Insiders are buying this stock into modest weakness, since shares are off by 3.6% during the last three months.

>>4 Tech Stocks Under $10 Making Big Moves

Tessera Technologies has a market cap of $1 billion and an enterprise value of $596 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 15.12. Its estimated growth rate for the next quarter is 217.1%, and for next year it's pegged at 178.3%. This is a cash-rich company, since the total cash position on its balance sheet is $376.81 million and its total debt is zero. This stock currently sports a dividend yield of 2.2%.

A director just bought 50,000 shares, or about $889,000 worth of stock, at $17.79 per share.

From a technical perspective, TSRA is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down from $19.75 to $17.60 a share with heavy downside volume. Following that move, shares of TSRA have started to rebound higher and fill some of that gap. That move is starting to push shares of TSRA within range of triggering a big breakout trade.

If you're bullish on TSRA, then I would look for long-biased trades as long as this stock is trending above its recent low of $17.60 and then once it breaks out above both its 50-day at $19.21 and its 200-day at $19.58 and above more past resistance at $20 to $20.55 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 volume of 441,450 shares. If that breakout hits soon, then TSRA will set up to re-test or possibly take out its 52-week high at $22.59 a share.

Balchem

One basic materials player that insiders are loading up on here is Balchem (BCPC), which develops, manufactures and sells specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries in the U.S. and internationally. Insiders are buying this stock into decent strength, since shares are up by 20% over the last six months.

>>5 Active Trades for a Quiet Month

Balchem has a market cap of $1.7 billion and an enterprise value of $1.5 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 39.94 and a forward price-to-earnings of 31.95. Its estimated growth rate for this year is 12.1%, and for next year it's pegged at 21.6%. This is a cash-rich company, since the total cash position on its balance sheet is $190.18 million and its total debt is zero. This stock currently sports a dividend yield of 0.50%.

The CFO just bought 17,000 shares, or about $957,000 worth of stock, at $56.53 per share.

From a technical perspective, BCPC is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways and consolidating for the last month and change, with shares moving between $55.45 on the downside and $59.97 on the upside. Shares of BCPC are now starting to trend within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.

If you're bullish on BCPC, then I would look for long-biased trades as long as this stock is trending above its 50-day at $57.07 or above more near-term support at $55.45 and then once it breaks out above some near-term overhead resistance levels $59 to its 52-week high at $59.97 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 98,729 shares. If that breakout hits soon, then BCPC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $65 to $70 a share.

S&W Seed

One final stock with notable insider buying is S&W Seed (SANW), which is engaged in breeding, growing, processing, and selling agricultural commodities. Insiders are buying this stock into modest weakness, since shares are off by 9.1% over the last three months.

S&W Seed has a market cap of $76 million and an enterprise value of $71 million. This stock trades at a reasonable valuation, with a forward price-to-earnings of 33.40. Its estimated growth rate for this year is 212.5%, and for next year it's pegged at 122.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $5.13 million and its total debt is $12.12 million.

A director just bought 100,000 shares, or about $560,000 worth of stock, at $5.60 per share.
From a technical perspective, SANW is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock recently spiked sharply higher back above its 50-day moving average of $6.09 a share with heavy upside volume. That move is starting to push shares of SANW within range of triggering a near-term breakout trade.

If you're bullish on SANW, then look for long-biased trades as long as this stock is trending above its 50-day at $6.09 and then once it breaks out above some near-term overhead resistance levels at $7.20 to its 200-day moving average of $7.62 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 123,516 shares. If that breakout triggers soon, then SANW will set up to re-test or possibly take out its next major overhead resistance levels at $8.23 to $9.21 a share. Any high-volume move above those levels will then give SANW a chance to tag $10 to $10.50 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.


RELATED LINKS:







Follow Stockpickr on Twitter and become a fan on Facebook.

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.