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 Restoration Hardware Holdings IN (NYSE:RH), a filing with the SEC revealed that on Wednesday, Director Thomas D. Mottola purchased 208,333 shares of RH, at a cost of $24.00 each, for a total investment of $5M. Mottola was up about 35.5% on the purchase at the high point of today's trading session, with RH trading as high as $32.52 in trading on Friday. Restoration Hardware Holdings IN is trading down about 2.4% on the day Friday. This purchase marks the first one filed by Mottola in the past twelve months.
And on Monday, Director Steven R. Becker purchased $2.70M worth of Tuesday Morning Corp. (NASDAQ:TUES), purchasing 456,735 shares at a cost of $5.92 a piece. Before this latest buy, Becker bought TUES on 2 other occasions during the past twelve months, for a total cost of $2.98M at an average of $5.32 per share. Tuesday Morning Corp. is trading down about 0.7% on the day Friday. Investors can bag TUES even cheaper than Becker did, with the stock trading as low as $5.62 at last check today -- that's 5.0% below Becker's purchase price.
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