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.
At Kinder Morgan (NYSE:KMI), a filing with the SEC revealed that on Friday, Director Fayez Sarofim bought 400,000 shares of KMI, at a cost of $37.68 each, for a total investment of $15.07M. Investors are able to bag KMI at a price even lower than Sarofim did, with the stock trading as low as $37.20 at last check today which is 1.3% below Sarofim's purchase price. Before this latest buy, Sarofim made one other purchase in the past year, buying $20.85M shares at a cost of $34.76 a piece.
And at McDermott International (NYSE:MDR), there was insider buying on Thursday, by CEO Stephen Marcum Johnson who bought 74,180 shares for a cost of $6.74 each, for a total investment of $499,973. This buy marks the first one filed by Johnson in the past year. McDermott International is trading down about 0.8% on the day Tuesday.
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