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.
On Tuesday, Leapfrog Enterprises (NYSE:LF)'s Director, Owen Randall Rissman, made a $227,475 purchase of LF, buying 25,000 shares at a cost of $9.10 each. Investors have the opportunity to bag LF even cheaper than Rissman did, with shares trading as low as $8.65 in trading on Thursday -- that's 4.9% under Rissman's purchase price. Before this latest buy, Rissman made one other buy in the past year, purchasing $411,202 shares for a cost of $8.22 each.
And at Babson Capital Global Short Duration High Yield Fund (NYSE:BGH), there was insider buying on Wednesday, by Zak Summerscale who bought 5,500 shares for a cost of $22.62 each, for a trade totaling $124,410. So far Summerscale is down about 0.9% on the buy, with shares trading as low as $22.42 at last check today.
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