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.
On Wednesday, Cheesecake Factory Inc. (NASDAQ:CAKE)'s Director, Herbert Simon, made a $767,412 buy of CAKE, purchasing 25,000 shares at a cost of $30.70 each. So far Simon is in the green, up about 1.1% on their buy based on today's trading high of $31.05. Cheesecake Factory Inc. is trading up about 0.8% on the day Thursday. Before this latest buy, Simon bought CAKE on 2 other occasions during the past twelve months, for a total cost of $1.33M at an average of $26.59 per share.
And on Monday, Director James M. Lapeyre Jr. bought $253,392 worth of ION Geophysical Corp (NYSE:IO), buying 40,000 shares at a cost of $6.33 a piece. Before this latest buy, Lapeyre Jr. bought IO on 5 other occasions during the past year, for a total cost of $1.42M at an average of $7.87 per share. ION Geophysical Corp is trading up about 0.2% on the day Thursday. Bargain hunters have the opportunity to snag IO even cheaper than Lapeyre Jr. did, with the stock changing hands as low as $6.18 in trading on Thursday -- that's 2.4% under Lapeyre Jr.'s purchase price.
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