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 Friday, CSPI's , Joseph R. Nerges, made a $329,767 purchase of CSPI, buying 18,138 shares at a cost of $18.18 each. So far Nerges is in the green, up about 7.9% on their buy based on today's trading high of $19.62. CSPI is trading up about 2.5% on the day Tuesday. Before this latest buy, Nerges purchased CSPI at 20 other times during the past year, for a total cost of $1.17M at an average of $12.75 per share.
And at Nuveen Floating Rate Income Fund, there was insider buying on Friday, by Matthew Thornton III who bought 29,000 shares at a cost of $8.16 each, for a trade totaling $236,643. This purchase marks the first one filed by Thornton III in the past year. Nuveen Floating Rate Income Fund is trading off about 0.2% on the day Tuesday. Bargain hunters have the opportunity to pick up JFR even cheaper than Thornton III did, with shares trading as low as $8.08 at last check today which is 1.0% under Thornton III's purchase price.
For MarketNewsVideo.com, I'm Sayoko Murase.