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 Violin Memory (VMEM), a filing with the SEC revealed that on Wednesday, Director Richard N. Nottenburg purchased 65,000 shares of VMEM, at a cost of $4.35 each, for a total investment of $282,608. Violin Memory is trading up about 4.2% on the day Friday. This buy marks the first one filed by Nottenburg in the past twelve months.
And at Alleghany Corp. (NYSE:Y), there was insider buying on Tuesday, by Director Raymond Wong who purchased 450 shares at a cost of $424.92 each, for a total investment of $191,214. Before this latest buy, Wong purchased Y at 2 other times during the past year, for a total cost of $233,477 at an average of $389.13 per share. Alleghany Corp. is trading up about 0.3% on the day Friday. Investors are able to pick up Y even cheaper than Wong did, with shares trading as low as $419.79 at last check today which is 1.2% below Wong's purchase price.
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