There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on September 12, Lannett Co., Inc. 's Director, David A. Drabik, invested $39,966.60 into 10,000 shares of LCI, for a cost per share of $4.00. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Tuesday, bargain hunters could buy shares of Lannett Co., Inc. (AMEX:LCI) and achieve a cost basis 4.9% cheaper than Drabik, with shares changing hands as low as $3.80 per share. Lannett Co., Inc. shares are currently trading up about 0.3% on the day. The chart below shows the one year performance of LCI shares, versus its 200 day moving average:
Looking at the chart above, LCI's low point in its 52 week range is $3.41 per share, with $6.75 as the 52 week high point — that compares with a last trade of $3.84. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
Arthur P. Bedrosian
President and CEO
David A. Drabik
LCI operates in the Drugs & Pharmaceuticals sector, among companies like Cadence Pharmaceuticals Inc (NASDAQ:CADX) which is off about 3% today, and Aegerion Pharmaceuticals Inc (NASDAQ:AEGR) trading up by about 4.5%. Below is a three month price history chart comparing the stock performance of LCI, versus CADX and AEGR.
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