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 BioAmber (BIOA), a filing with the SEC revealed that on Wednesday, CEO Jean-Francois Huc purchased 4,000 shares of BIOA, at a cost of $12.00 each, for a total investment of $48,000. Investors can pick up BIOA even cheaper than Huc did, with shares trading as low as $11.25 at last check today -- that's 6.2% under Huc's purchase price. BioAmber is trading off about 1.7% on the day Thursday. Before this latest buy, Huc bought BIOA on 2 other occasions during the past year, for a total investment of $51,760 at an average of $6.47 per share.
And at Royal Bancshares of Pennsylvania (NASDAQ:RBPAA), there was insider buying on Monday, by Director William R. Hartman who purchased 8,600 shares for a cost of $1.65 each, for a total investment of $14,210. Before this latest buy, Hartman made one other buy in the past year, purchasing $124,601 shares for a cost of $1.20 a piece. Royal Bancshares of Pennsylvania is trading up about 2.5% on the day Thursday. So far Hartman is in the green, up about 25.3% on their buy based on today's trading high of $2.07.
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