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, Jernigan Capital's Director, James D. Dondero, made a $2.2M buy of JCAP, purchasing 100,000 shares at a cost of $22.00 a piece. Dondero was up about 4.3% on the purchase at the high point of today's trading session, with JCAP trading as high as $22.95 in trading on Wednesday. Jernigan Capital is trading up about 1.1% on the day Wednesday. Before this latest buy, Dondero made one other buy in the past twelve months, purchasing $1.50M shares for a cost of $19.00 a piece.
And at Spring Bank Pharmaceuticals, there was insider buying on Tuesday, by Director Kurt M. Eichler who bought 76,923 shares at a cost of $13.00 each, for a trade totaling $999,999. Before this latest buy, Eichler purchased SBPH on 5 other occasions during the past year, for a total cost of $119,451 at an average of $9.41 per share. Spring Bank Pharmaceuticals is trading up about 0.3% on the day Wednesday. Eichler was up about 1.9% on the buy at the high point of today's trading session, with SBPH trading as high as $13.25 at last check today.
For MarketNewsVideo.com, I'm Sayoko Murase.