One Insider Just Bought $6.5 Million Worth of This Restaurant Player

Company insiders will sell their own stock for all sorts of reasons. They might need cash for a fancy new car, a large tax bill or simply for diversification purposes.

Insiders, however, usually buy their own shares for one reason only: They think the stock is undervalued with tremendous upside.

Recently, a number of companies' corporate insiders have been loading up on stock. These insiders see value, which warrants a closer look at these names.

Intel Corporation

One semiconductor player that insiders are active in right now is Intel Corporation (INTC) , which designs, manufactures and sells computer, networking and communications platforms worldwide.

Intel has a market cap of $167 billion. This stock trades at a fair valuation, with a forward price-to-earnings ratio of 11.9 times. Its estimated growth rate for this year is 5.10%, and for next year it's pegged at 3.80%. This is not a cash-rich company, since its total cash position is $17.29 billion, and its total debt is $25.75 billion.

The CFO bought 13,888 shares, or $504,000 worth of stock, at $36.30 per share.

If you're bullish on INTC, I would look for long-biased trades if this stock is trending above some near-term support at $35 or at $34.40, and then once it breaks out above resistance levels at $36.60 to $37.22 with volume near or above its three-month average of 21.24 million shares. Some possible upside targets off that breakout are its 52-week high of $38.45 to $40 a share.

Tempur Sealy International Inc.

Another consumer goods player that insiders are jumping into here is Tempur Sealy International Inc. (TPX) , which develops, manufactures, markets and distributes bedding products worldwide.

Tempur Sealy has a market cap of $2.66 billion. This stock trades at a fair valuation, with a forward price-to-earnings of 13.9 times. Its estimated growth rate for this year is -20%, and for next year it's pegged at 9.6%. This is not a cash-rich company, since its total cash position is $42.5 million and its total debt is $1.86 billion.

A director just bought 100,000 shares, or $4.73 million worth of stock, at $47.37 per share.

If you're bullish on TPX, I would look for long-biased trades if this stock is trending above its 50-day at $46.44 or above $45, and then once it breaks out above some key resistance levels at $51.50 to $51.60 with volume near or above its three-month average of 1.25 million shares. If that breakout hits soon, then this stock will set up to refill some of its previous gap-down-day zone from January that started near $66 a share.

Fiesta Restaurant Group Inc.

One restaurants player that insiders are active in here is Fiesta Restaurant Group Inc. (FRGI) , which owns, operates and franchises fast-casual restaurants.

Fiesta Restaurant Group has a market cap of 584 million. The stock trades at a fair valuation with a forward price-to-earnings of 17.7 times. Its estimated growth rate for this year is -11.6%, and for next year it's pegged at 7%. This is not a cash-rich company, since its total cash position is $7.71 million, and its total debt is $76.15 million.

A director just bought 309,115 shares, or $6.52 million worth of stock, at $21.06 to $21.25 per share.

If you're in the bull camp on FRGI, I would look for long-biased trades if this stock is trending above some near-term support at $20.65 and once it breaks out above a key downtrend line that will trigger over $22.20 to $22.85, and $23.85 with volume near or above its three-month average of 449,612 shares. Some possible upside targets off that breakout are its 200-day at $25.55 to $28, or even $30 a share.

Revlon Inc.

Another consumer goods player that insiders are in love with here is Revlon Inc. (REV) , which manufactures, markets and sells beauty and personal care products worldwide.

Revlon has a market cap of $1.1 billion. This stock trades at a reasonable valuation, with a price-to-sales of 0.44 times. This is not a cash-rich company, since its total cash position is $121.50 million, and its total debt is $2.73 billion.

A director just bought 347,028 shares, or $6.79 million worth of stock, at $19.01 to $20.16 per share.

If you're bullish on REV, I would look for long-biased trades if this stock is trending above its 20-day at $19.40, and then once it breaks out above some resistance levels at $21.25 to $21.45, and over its 50-day at $22.48 with volume near or above its three-month average of 227,604 shares. If that breakout hits soon, then this stock will set up to refill some of its previous gap-down-day zone from May that started near $26 a share.

SeaWorld Entertainment Inc.




My final stock with some large insider buying is services player SeaWorld Entertainment Inc. (SEAS) , which operates as a theme park and entertainment company in the U.S.

SeaWorld Entertainment has a market cap of $1.55 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings 17.7 times. Its estimated growth rate for this year is 31.4%, and for next year it's pegged at 43.3%. This is not a cash-rich company, since its total cash position is $33.22 million, and its total debt is $1.63 billion.

A beneficial owner just bought 170,000 shares, or $2.93 million worth of stock, at $17.26 per share.

If you're bullish on SEAS, I would look for long-biased trades if this stock is trending above its recent low of $15.81 and then once it breaks out above resistance levels at $17.15 to its 20-day at $17.47 with volume near or above its three-month average of 1.77 million shares. Some possible upside targets off that breakout are $18.60 to $19.25, or even its 52-week high of $20.13 a share.
Read More: One Insider Just Bought $65 Million Worth of This Expensive Biotech Stock

By Roberto Pedone

Source: https://goo.gl/1QYhDc