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 New Mountain Finance (NYSE:NMFC), a filing with the SEC revealed that on Friday, CEO Robert Hamwee purchased 12,000 shares of NMFC, at a cost of $14.75 each, for a total investment of $176,984. Hamwee was up about 1.6% on the purchase at the high point of today's trading session, with NMFC trading as high as $14.99 at last check today. New Mountain Finance Corp is trading up about 0.3% on the day Wednesday. Before this latest buy, Hamwee made one other buy in the past year, purchasing $219,821 shares for a cost of $14.65 a piece.
And at McDermott International (NYSE:MDR), there was insider buying on Friday, by Director William H. Schumann who purchased 20,000 shares at a cost of $7.86 each, for a trade totaling $157,100. McDermott International is trading down about 0.2% on the day Wednesday. Bargain hunters are able to bag MDR at a price even lower than Schumann did, with shares changing hands as low as $7.67 at last check today -- that's 2.4% below Schumann's purchase price.
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