A BETTER ANSWER.
Corporate insiders sell their own companies' stock for a number of reasons. They might need the cash for a big personal purchase such as a new house, or they might need the cash to fund a charity. Sometimes they sell as part of a planned program that they have put in place for diversification purposes.
Insiders, however, usually buy their own shares for one reason only: They think the stock is cheap and has tremendous upside.
Recently, a number of companies' corporate insiders have bought stock. These insiders are finding some value in this market, which warrants a closer look at these names.
Kratos Defense & Security Solutions
One defense player that insiders are loading up on is Kratos Defense & Security Solutions (KTOS) , which provides mission critical products, solutions, and services in the U.S.
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Kratos Defense & Security Solutions has a market cap of $638 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 21.5. Its estimated growth rate for this year is 128.6%, and for next year it's pegged at 1,650%. This is not a cash-rich company, since its total cash position is $69.1 million and its total debt is $432 million.
A director just bought 275,862 shares, or $2 million worth of stock, at $7.25 per share.
If you're bullish on Kratos Defense & Security Solutions, then I would look for long-biased trades as long as this stock is trending above support at $6.96 to $6.83 and then once it breaks out above resistance at $7.65 with volume near or above its three-month average of 1.31 million shares. If that breakout hits, then this stock could re-fill its recent gap-down-day zone that started at $8.40 a share.
This post is as I believe it, as I remember it and, as always, just my opinion !!
