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 Chesapeake Energy (NYSE:CHK), a filing with the SEC revealed that on Friday, CEO Aubrey McClendon bought 11,000 shares of CHK, at a cost of $22.76 each, for a total investment of $250,384. Chesapeake Energy is trading up about 2.3% on the day Tuesday. Before this latest buy, McClendon made one other buy in the past twelve months, purchasing $249,369 shares at a cost of $29.00 a piece. In the past year, 5 other insiders bought CHK, in 6 transactions, for a total cost of $6.19M at an average of $27.18 per share.
And on Monday, Director Richard Sharp purchased $243,892 worth of Star Scientific (CIGX), purchasing 100,000 shares at a cost of $2.44 each. No other insiders have filed buys of CIGX in the past twelve months. Star Scientific, Inc. is trading off about 1.5% on the day Tuesday.
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