Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Thursday, Reata Pharmaceuticals (NASDAQ:RETA)'s, James W. Traweek Jr., made a $4.96M buy of RETA, purchasing 200,000 shares at a cost of $24.79 a piece. So far Traweek Jr. is in the green, up about 10.1% on their purchase based on today's trading high of $27.29. Reata Pharmaceuticals is trading up about 7.7% on the day Monday. Before this latest buy, Traweek Jr. bought RETA on 5 other occasions during the past twelve months, for a total investment of $1.02M at an average of $21.72 per share.
And at Discovery Communications (NASDAQ:DISCA), there was insider buying on Thursday, by Director J. David Wargo who bought 100,000 shares at a cost of $18.55 each, for a trade totaling $1.86M. Before this latest buy, Wargo made one other buy in the past twelve months, purchasing $1.58M shares for a cost of $15.76 each. Discovery Communications is trading down about 0.9% on the day Monday. So far Wargo is in the green, up about 15.5% on their purchase based on today's trading high of $21.43.
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