Wednesday, June 27, 2012

10 Retail Stocks Being Snapped Up By Insiders

If you're interested in the retail sector but don't know where to start, here are some ideas you may find helpful.

We ran a screen on the retail industry for stocks seeing the most significant net insider purchases over the last six months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

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We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

These insiders stand behind their employers - do you think they'll outperform? Use this list as a starting point for your own analysis.

List sorted by net insider purchases as a percent of share float.

1. Carter's, Inc. (CRI): Designs, sources, and markets branded children's wear. Market cap of $2.38B. Net insider shares purchased over the last six months at 1.11M, which is 2.25% of the company's 49.41M share float. The stock is a short squeeze candidate, with a short float at 6.59% (equivalent to 5.74 days of average volume). The stock has gained 41.8% over the last year.

2. Saks Incorporated (SKS): Operates fashion retail stores in the United States. Market cap of $1.54B. Net insider shares purchased over the last six months at 886.72K, which is 0.87% of the company's 101.62M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.54). The stock is a short squeeze candidate, with a short float at 28.34% (equivalent to 10.99 days of average volume). The stock has lost 16.35% over the last year.

3. American Eagle Outfitters, Inc. (AEO): Operates as an apparel and accessories retailer in the United States and Canada. Market cap of $2.60B. Net insider shares purchased over the last six months at 1.13M, which is 0.68% of the company's 166.68M share float. It's been a rough couple of days for the stock, losing 12.48% over the last week.

4. Perry Ellis International Inc. (PERY): Engages in designing, sourcing, marketing, and licensing apparel products for men and women in the United States and internationally. Market cap of $218.42M. Net insider shares purchased over the last six months at 35.45K, which is 0.35% of the company's 10.02M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.14). The stock has lost 45.45% over the last year.

5. G-III Apparel Group, Ltd. (GIII): Designs, manufactures, imports, and markets a range of outerwear and sportswear apparel to retailers primarily in the United States. Market cap of $462.22M. Net insider shares purchased over the last six months at 20.0K, which is 0.15% of the company's 13.71M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.48). The stock is a short squeeze candidate, with a short float at 10.71% (equivalent to 6.03 days of average volume). The stock has had a good month, gaining 23.05%.

6. WMS Industries Inc. (WMS): Engages in the design, manufacture, and distribution of games, video and mechanical reel-spinning gaming machines, and video lottery terminals (VLTS) for the legalized gaming industry worldwide. Market cap of $1.15B. Net insider shares purchased over the last six months at 65.90K, which is 0.12% of the company's 54.17M share float. The stock is a short squeeze candidate, with a short float at 10.33% (equivalent to 5.82 days of average volume). The stock has lost 56.47% over the last year.

7. OfficeMax Incorporated (OMX): Distributes business-to-business and retail office products. Market cap of $385.82M. Net insider shares purchased over the last six months at 89.30K, which is 0.11% of the company's 84.73M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.54). The stock is a short squeeze candidate, with a short float at 16.8% (equivalent to 7.24 days of average volume). The stock has performed poorly over the last month, losing 10.58%.

8. Inergy, L.P. (NRGY): Engages in the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers in the United States. Market cap of $3.19B. Net insider shares purchased over the last six months at 90.80K, which is 0.09% of the company's 95.65M share float. The stock has lost 33.56% over the last year.

9. Office Depot, Inc. (ODP): Supplies office products and services. Market cap of $594.60M. Net insider shares purchased over the last six months at 165.0K, which is 0.06% of the company's 275.80M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.18). The stock is a short squeeze candidate, with a short float at 10.25% (equivalent to 6.69 days of average volume). The stock has performed poorly over the last month, losing 12.03%.

10. The Talbots Inc. (TLB): Operates as a specialty retailer and direct marketer of women's apparel, accessories, and shoes in the United States and Canada. Market cap of $193.20M. Net insider shares purchased over the last six months at 32.0K, which is 0.06% of the company's 57.02M share float. The stock is a short squeeze candidate, with a short float at 19.32% (equivalent to 9.84 days of average volume). The stock has had a good month, gaining 75.64%.

*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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