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 Exelis Incorporated (NYSE:XLS), a filing with the SEC revealed that on Wednesday, CEO and President David F. Melcher purchased 16,000 shares of XLS, at a cost of $8.68 each, for a total investment of $138,880. Exelis Incorporated is trading up about 3.3% on the day Thursday. In the past twelve months, 2 other insiders purchased XLS, in 2 transactions, for a total investment of $175,000 at an average of $8.75 per share.
And on Monday, Director James J. Lynch bought $114,906 worth of Cape Bancorp, Inc. (NASDAQ:CBNJ), buying 16,000 shares at a cost of $7.18 each. Before this latest buy, Lynch bought CBNJ at 7 other times during the past twelve months, for a total investment of $633,247 at an average of $7.67 per share. In the past twelve months, 4 other insiders purchased CBNJ, in 6 transactions, for a total investment of $187,344 at an average of $8.26 per share. Cape Bancorp, Inc. is trading down about 1.6% on the day Thursday.
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