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 Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR), a filing with the SEC revealed that on Thursday, CEO Leonard M. Tannenbaum bought 85,870 shares of FSFR, for a cost of $14.33 each, for a total investment of $1.23M. Tannenbaum was up about 1.1% on the buy at the high point of today's trading session, with FSFR trading as high as $14.49 at last check today. Fifth Street Senior Floating Rate Corp. is trading trading flat on the day Friday. Before this latest buy, Tannenbaum bought FSFR at 11 other times during the past year, for a total investment of $4.75M at an average of $13.95 per share.
And on Wednesday, Director John Van Heuvelen purchased $251,000 worth of Orchid Island Capital (AMEX:ORC), purchasing 20,000 shares at a cost of $12.55 each. Before this latest buy, Heuvelen purchased ORC on 2 other occasions during the past twelve months, for a total investment of $187,601 at an average of $11.73 per share. Orchid Island Capital is trading up about 0.4% on the day Friday. Investors can snag ORC at a price even lower than Heuvelen did, with the stock trading as low as $12.28 in trading on Friday -- that's 2.2% under Heuvelen's purchase price.
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