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 PIMCO Dynamic Credit Income Fund (NYSE:PCI), a filing with the SEC revealed that on Tuesday, William H. Gross purchased 101,444 shares of PCI, at a cost of $23.67 each, for a total investment of $2.40M. PIMCO Dynamic Credit Income Fund is trading up about 0.3% on the day Friday. Before this latest buy, Gross bought PCI on 25 other occasions during the past twelve months, for a total cost of $57.85M at an average of $23.18 per share.
And at RXI Pharmaceuticals (NASDAQ:RXII), there was insider buying on Wednesday, by CEO Geert Cauwenbergh who purchased 1,400 shares for a cost of $2.57 each, for a total investment of $3,598. Before this latest buy, Cauwenbergh purchased RXII at 33 other times during the past twelve months, for a total cost of $68,709 at an average of $3.39 per share. RXI Pharmaceuticals is trading trading flat on the day Friday. Bargain hunters are able to pick up RXII at a price even lower than Cauwenbergh did, with the stock trading as low as $2.48 in trading on Friday -- that's 3.5% below Cauwenbergh's purchase price.
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