As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
On Tuesday, Yum! Brands (YUM)'s Director, Michael J. Cavanagh, made a $691,818 buy of YUM, purchasing 10,000 shares at a cost of $69.18 each. So far Cavanagh is in the green, up about 1.4% on their buy based on today's trading high of $70.14. Yum! Brands is trading up about 1.5% on the day Wednesday. This buy marks the first one filed by Cavanagh in the past year.
And at NGL Energy Partners (NGL), there was insider buying on Friday, by Chief Executive Officer H. Michael Krimbill who purchased 20,000 shares at a cost of $23.04 each, for a trade totaling $460,724. Before this latest buy, Krimbill made one other purchase in the past twelve months, buying $633,128 shares for a cost of $31.66 each. NGL Energy Partners is trading up about 3.4% on the day Wednesday. So far Krimbill is in the green, up about 17.2% on their buy based on today's trading high of $27.00.
For MarketNewsVideo.com, I'm Sayoko Murase.