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 ADT, a filing with the SEC revealed that on Monday, Director Andrew Africk bought 130,000 shares of ADT, for a cost of $7.46 each, for a total investment of $969,921. Bargain hunters can buy ADT even cheaper than Africk did, with the stock trading as low as $6.93 at last check today -- that's 7.1% below Africk's purchase price. ADT is trading off about 2.7% on the day Tuesday.
And at Ellington Financial, there was insider buying on Friday, by CEO and President Laurence Penn who bought 23,890 shares at a cost of $15.77 each, for a trade totaling $376,794. Ellington Financial is trading trading flat on the day Tuesday. So far Penn is in the green, up about 3.8% on their buy based on today's trading high of $16.37.
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