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 Smithfield Foods, Inc. (NYSE:SFD), a filing with the SEC revealed that on Monday, Director David C. Nelson bought 5,000 shares of SFD, at a cost of $19.99 each, for a total investment of $99,962. Nelson was up about 9.0% on the buy at the high point of today's trading session, with SFD trading as high as $21.79 in trading on Thursday. Smithfield Foods, Inc. is trading off about 1.5% on the day Thursday. Before this latest buy, Nelson made one other buy in the past twelve months, purchasing $461,605 shares at a cost of $18.46 each.
And also on Monday, Director Paula H. Cholmondeley purchased $99,711 worth of Terex Corp. (NYSE:TEX), purchasing 5,469 shares at a cost of $18.23 a piece. This buy marks the first one filed by Cholmondeley in the past year. Terex Corp. is trading down about 5.7% on the day Thursday.
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