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.
At Danaher, a filing with the SEC revealed that on Thursday, Chairman of Exec. Committee Mitchell P. Rales purchased 26,784 shares of DHR, for a cost of $226.14 each, for a total investment of $6.06M. Bargain hunters can pick up DHR at a price even lower than Rales did, with shares trading as low as $216.71 at last check today -- that's 4.2% under Rales's purchase price. Danaher is trading off about 1.5% on the day Tuesday. Before this latest buy, Rales purchased DHR at 2 other times during the past year, for a total cost of $23.49M at an average of $164.68 per share.
And on Monday, John W. Childs bought $447,736 worth of Biohaven Pharmaceutical Holding, buying 5,000 shares at a cost of $89.55 a piece. Before this latest buy, Childs purchased BHVN at 3 other times during the past year, for a total investment of $2.13M at an average of $60.84 per share. Biohaven Pharmaceutical Holding is trading up about 2.7% on the day Tuesday.
For MarketNewsVideo.com, I'm Sayoko Murase.