Insiders Buying up American Superconductor (AMSC) shares

Plain and simple, insiders have been buying American Superconductor Corporation (NASDAQ:AMSC) shares like candy. During the month of July, insiders snapped up 200,000 shares of company stock at a market value of $6,403,500. During the past six months, insiders have increased their overall holdings in the company by 12.78% and now own 10.23% of AMSC stock.

Over the past 12 months American Superconductor (AMSC) shares have traded between $24.35 and its 52-week high of $43.95.  American Superconductor Corp shares are now trading with a P/E Ratio of 84.4 and EPS of 0.36.

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The company,  which makes electrical systems for wind farms and turbines, posted strong quarterly results last week and raised its full-year outlook, but shares fell as much as 8 percent as it reported an increase in accounts receivables for the quarter.

In a post-earnings conference call, the company said it received significant portion of receivables from their largest customer Sinovel Wind Group Co Ltd in the first week of July.

"There was some concern over the higher receivables numbers that was initially reported ... In the call, management explained the payment has been received in July as opposed to June," Gleacher & Co analyst John Hardy said.

Bottom Line:

The insiders must know something, and its always good to see the managment buying up their own company.  Despite the 13% increase in American Superconductor Corp (AMSC) shares in the past 30 days, its share price is just 19% above its 52-week low.  Take a gander at the chart,  AMSC shares are poised for a nice run to $40.