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 FirstCash Holdings, a filing with the SEC revealed that on Wednesday, AFF President Howard F. Hambleton bought 13,187 shares of FCFS, at a cost of $75.82 each, for a total investment of $999,900. Investors have the opportunity to snag FCFS at a price even lower than Hambleton did, with shares trading as low as $70.90 in trading on Thursday -- that's 6.5% under Hambleton's purchase price. FirstCash Holdings is trading down about 2.6% on the day Thursday. This purchase marks the first one filed by Hambleton in the past twelve months.
And at Vishay Precision Group, there was insider buying on Tuesday, by Director Wes Cummins who purchased 30,000 shares at a cost of $32.26 each, for a trade totaling $967,650. Before this latest buy, Cummins bought VPG on 4 other occasions during the past year, for a total cost of $1.25M at an average of $35.80 per share. Vishay Precision Group is trading up about 0.2% on the day Thursday. Bargain hunters have the opportunity to pick up VPG even cheaper than Cummins did, with the stock trading as low as $31.41 in trading on Thursday which is 2.6% under Cummins's purchase price.
For MarketNewsVideo.com, I'm Sayoko Murase.