2 Stocks Popping on Insider Buying News

The broader stock markets are struggling this afternoon

Stocks are struggling to maintain their early morning positive momentum this afternoon, though all three major market indexes are pacing toward their first weekly win of August. Two names making notable moves today are hospital operator Community Health Systems (NYSE:CYH) and bulk shipping specialist Eagle Bulk Shipping Inc. (NASDAQ:EGLE). Here's a quick look at what's moving the shares of CYH and EGLE.

Community Health Systems Pops After CEO Stock Purchase

Community Health Systems stock is near the top of the New York Stock Exchange (NYSE) -- up 13% at $2.44 -- after a Securities and Exchange Commission (SEC) filing revealed CEO Wayne Smith bought 1.2 million CYH shares between Tuesday and Thursday of this week, for an average price of $2 per share.

Although the penny stock is headed for its biggest weekly gain since late November -- up 30% so far -- it's running out of steam near its 80-day moving average, and is still down more than 50% from its early March high at $5.35. The underperformer is heavily shorted, too, with short interest accounting for almost 23% of CYH stock's available float.

Eagle Bulk Shipping Swings Back Above YTD Breakeven

Eagle Bulk Shipping Director Paul Leand purchased 59,300 EGLE shares on Tuesday and Wednesday, when the stock was trading at $4.16 and $4.20, respectively. In reaction, EGLE shares have shot up 8.4% today to trade at $4.65, on track to close above their year-to-date (YTD) breakeven level for the first time since July 31.

One options trader today appears to be setting a longer-term ceiling for EGLE shares by selling to open a 1,000-contract block of April 5 calls for $0.60 apiece. However, this could also be a covered call strategy, where a shareholder is looking to generate some extra income on the underperforming stock.