Insider buying in Covid-impacted stocks trading more than 20% below their 200 day moving averages.

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The S&P 500 traded above its 200 day moving average last week for the first time since March 5. Back on March 23, at the bottom of the crash, the index was 28% below its 200 Day MA. The market has seen an amazing “bounce” since then. But many stocks — mainly those hurt most by the Covid-19 lockdown — still trade 20% or even 50% below their long term moving averages. Might these stocks belatedly follow the S&P and revert higher? Below we look at insider buying in Covid-impacted stocks, where insiders may be signaling that higher prices are likely.

No stock indicator is more widely followed than the 200 Day Moving Average. The 200 Day MA is simply the average closing price of a stock or index over the last 200 trading days, typically plotted as a line on a price chart. The significance of that particular moving average — rather than, say, the 50 day MA — is debatable. But there is a long history of using a stock or index price vs its 200 day moving average as the demarcation of whether the security is in an uptrend or a downtrend.


S&P 500 ETF (SPY) with its 200 day moving average.

Covid-impacted stocks trading >20% below their 200 day moving averages. Insider buying may be a precursor to mean reversion profits.

The 200 day MA can also be used as a long-term overbought/oversold indicator. The further a stock’s price moves from the moving average, the more likely that mean reversion will exert its force, and pull the stock back to the average.

But how does one distinguish the unfairly punished stocks from those destined for further losses or even bankruptcy? A possible signal of upward mean reversion may be insider buying. No one knows better than officers and directors — who have proprietary knowledge about their own companies — whether a stock is a good bet to trade higher in the months ahead.

Insider buying in Covid-impacted stocks. Below are stocks trading more than 20% below their 200 day moving averages. These stocks have seen at least $100K of insider buying over the last two weeks. Use this list as an initial screen — do more research before risking any capital.

Source: WhaleWisdom.com

Most recent FilingCompanyTickerIndustry Group% Below 200 MA# InsidersLast Trade Total Shares Avg. Price Total 
15-May-2020Kaman Corp.KAMNAerospace/Defense-22%114-May-2020           3,300 30.56 $         100,834.14
15-May-2020Harley-Davidson, Inc.HOGAutomotive-25%213-May-2020        64,520 19.42 $     1,252,781.38
15-May-2020Hanmi Financial Corp.HAFCBanking-40%515-May-2020        14,000 7.74 $         108,383.89
28-May-2020Malvern Bancorp, Inc.MLVFBanking-33%426-May-2020        13,319 10.99 $         146,418.81
15-May-2020Rbb BancorpRBBBanking-24%214-May-2020        12,000 10.97 $         131,626.41
15-May-2020Simmons First National Corp.SFNCBanking-21%113-May-2020        10,000 14.77 $         147,700.00
15-May-2020S&T Bancorp Inc.STBABanking-31%314-May-2020           5,600 20.54 $         115,044.01
15-May-2020Spirit Of Texas Bancshares,…STXBBanking-28%214-May-2020        25,000 9.74 $         243,540.00
18-May-2020Deluxe Corp.DLXCommercial Services-34%115-May-2020           7,700 19.53 $         150,344.70
15-May-2020Conduent IncCNDTComputers-49%114-May-2020        55,560 1.8 $         100,008.00
27-May-2020Ballantyne of Omaha Inc.BTNConsumer Durables-32%126-May-2020        82,250 1.52 $         124,997.03
18-May-2020Brinks Co.BCODiversified Services-41%114-May-2020           3,173 33.82 $         107,345.00
19-May-2020Cardtronics PlcCATMDiversified Services-22%415-May-2020        54,523 18.82 $     1,026,225.62
26-May-2020Cross Country Healthcare Inc.CCRNDiversified Services-29%822-May-2020        89,190 5.19 $         463,328.84
15-May-2020Accelerate Diagnostics, Inc.AXDXElectronics-41%113-May-2020        89,055 9.46 $         842,460.31
18-May-2020Cubic Corp.CUBElectronics-24%314-May-2020           4,350 32.31 $         140,539.05
20-May-2020Regional Management Corp.RMFinancial Services-29%418-May-2020      113,794 11.59 $     1,318,769.38
15-May-2020GSC Investment CorpSARFinancial Services-24%114-May-2020           8,000 12.65 $         101,160.00
22-May-2020Andersons Inc.ANDEFood and Beverage-37%121-May-2020        17,513 11.52 $         201,749.77
22-May-2020Hf Foods Group Inc.HFFGFood and Beverage-47%122-May-2020        53,786 6.45 $         346,699.19
27-May-2020United Insurance Holdings C…UIHCInsurance-28%326-May-2020        13,732 7.56 $         103,805.15
27-May-2020Royal Caribbean Cruises Ltd.RCLLeisure-36%126-May-2020        20,000 48.63 $         972,518.00
20-May-2020Entercom Communications Corp.ETMMedia-47%120-May-2020   1,200,000 1.32 $     1,584,000.62
19-May-2020Equitrans Midstream CorpETRNPipelines-22%119-May-2020        45,000 7.97 $         358,650.00
26-May-2020Armada Hoffler Properties, …AHHReal Estate-38%120-May-2020        43,918 7.93 $         348,269.72
15-May-2020Preferred Apartment Communi…APTSReal Estate-34%114-May-2020        50,000 6.18 $         308,950.00
15-May-2020Hersha Hospitality TrustHTReal Estate-49%214-May-2020        30,000 3.76 $         112,909.00
15-May-2020Front Yard Residential Corp…RESIReal Estate-31%215-May-2020      393,509 6.23 $     2,452,074.50
18-May-2020RPT RealtyRPTReal Estate-44%615-May-2020        37,000 4.98 $         184,140.00
19-May-2020Store Capital CorpSTORReal Estate-32%215-May-2020           6,600 17.46 $         115,225.80
19-May-2020Whitestone ReitWSRReal Estate-38%118-May-2020        18,000 5.75 $         103,500.00

You can follow 13Fs, insider buying and other SEC filings at WhaleWisdom.com.

Contact Mark about investing based on SEC filings and smart money disclosures.

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