9 Oversold Rebound Candidates

When looking to invest in a stock with rebound potential, there seems to be no end to the data to sort through. Different analysts swear by different metrics, each of which relies on more data points, complex equations, and an unending supply of acronyms.

It’s complicated, we understand.

To make things simple, yet effective, we’ve chosen stocks that have met two powerful criteria…

They are:

1) Significant Insider Buying Over the Last Six Months

Pretty self-explanatory… Insiders work for the company in question and their investment activity is closely monitored. Insiders usually have access to more information than us outsiders, and their investment activity in the company can tell us a lot about where they feel the business is heading.

The list below features names experiencing insider buying.

2) Oversold Conditions, According to the RSI(14) Indicator

RSI stands for Relative Strength Index, and it measures the speed and change of price movements. It is often used as a momentum indicator, with a reading that ranges from 0 to 100.

In general:

RSI(14) above 70 signal the stocks are overbought (i.e. prices might soon decline)
RSI(14) below 30 signal the stocks are oversold (i.e. prices might soon rebound)

The list below features stocks that are oversold – RSI(14) below 30.

Given this information, which of the stocks listed below do you think will have the greatest momentum in the upcoming days? Use the data as a staring point for your own analysis.

analyse The Stocks Mentioned Below:

1. Access a performance overview of all stocks mentioned
2. Access analyst ratings of all stocks mentioned below
3. Access other interactive tools to analyse the list

List sorted by the relative size of insider buying over the last six months.

1. Synta Pharmaceuticals Corp.  (Nasdaq: SNTA): Market cap of $187.34M. Over the past 6 months, inside investors have been net buyers of 1,545,920 shares, representing 5.98% of the company’s 25.85M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 34.8.

2. Everest Re Group Ltd. (NYSE: RE): Market cap of $4.42B. Over the past 6 months, inside investors have been net buyers of 1,250,180 shares, representing 2.84% of the company’s 44.01M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 28.4.

3. AtriCure, Inc.  (Nasdaq: AUXL): Market cap of $941.01M. Over the past 6 months, inside investors have been net buyers of 973,072 shares, representing 2.22% of the company’s 43.80M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 27.98.

4. AtriCure, Inc.  (Nasdaq: ATRC): Market cap of $200.55M. Over the past 6 months, inside investors have been net buyers of 129,102 shares, representing 1.40% of the company’s 9.25M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 32.23.

5. Skilled Healthcare Group, Inc. (Nasdaq: SKH): Market cap of $378.50M. Over the past 6 months, inside investors have been net buyers of 246,100 shares, representing 1.27% of the company’s 19.41M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 27.78.

6. TransAtlantic Petroleum Ltd. (NYSE: TAT): Market cap of $654.37M. Over the past 6 months, inside investors have been net buyers of 1,668,640 shares, representing 0.84% of the company’s 199.44M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 34.19.

7. Capital Bank Corporation  (Nasdaq: CBKN): Market cap of $297.73M. Over the past 6 months, inside investors have been net buyers of 99,652 shares, representing 0.71% of the company’s 13.97M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 34.86.

8. Prospect Capital Corporation (Nasdaq: PSEC): Market cap of $988.04M. Over the past 6 months, inside investors have been net buyers of 128,266 shares, representing 0.13% of the company’s 96.13M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 28.42.

9. Mueller Water Products, Inc. (NYSE: MWA):  Market cap of $595.49M. Over the past 6 months, inside investors have been net buyers of 125,000 shares, representing 0.09% of the company’s 142.84M float. Using the RSI(14) as an indicator, the stock appears oversold at a level of 32.62.

(Compiled by Becca Lipman)

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