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 cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
At Enviva, a filing with the SEC revealed that on Tuesday, Director John C. Bumgarner Jr. bought 13,600 shares of EVA, for a cost of $73.13 each, for a total investment of $994,540. Bargain hunters have the opportunity to bag EVA even cheaper than Bumgarner Jr. did, with the stock changing hands as low as $64.05 at last check today which is 12.4% below Bumgarner Jr.'s purchase price. Enviva is trading off about 0.9% on the day Thursday. Before this latest buy, Bumgarner Jr. made one other purchase in the past year, buying $1.5M shares for a cost of $45.50 each.
And at Herbalife Nutrition, there was insider buying on Wednesday, by President John Desimone who bought 43,478 shares at a cost of $21.54 each, for a total investment of $936,516. This purchase marks the first one filed by Desimone in the past twelve months. Herbalife Nutrition is trading up about 9.3% on the day Thursday. So far Desimone is in the green, up about 9.5% on their buy based on today's trading high of $23.58.
For MarketNewsVideo.com, I'm Sayoko Murase.