Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Wednesday, Compass Diversified Holdings', Elias Sabo, made a $1.22M buy of CODI, purchasing 54,601 shares at a cost of $22.32 a piece. Compass Diversified Holdings is trading up about 3.4% on the day Thursday. Before this latest buy, Sabo purchased CODI at 2 other times during the past twelve months, for a total investment of $1.4M at an average of $17.50 per share.
And at Tela Bio, there was insider buying on Wednesday, by Director Matt Zuga who purchased 86,121 shares for a cost of $13.00 each, for a total investment of $1.12M. Tela Bio is trading up about 0.4% on the day Thursday. Investors have the opportunity to buy TELA at a price even lower than Zuga did, with shares changing hands as low as $12.40 in trading on Thursday — that's 4.6% under Zuga's purchase price.
For MarketNewsVideo.com, I'm Sayoko Murase.