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.
On Thursday, Entercom Communications Corp (NYSE:ETM)'s Chairman Emeritus, Joseph M. Field, made a $1.41M buy of ETM, purchasing 200,000 shares at a cost of $7.07 a piece. Investors can bag ETM even cheaper than Field did, with the stock trading as low as $6.60 in trading on Tuesday — that's 6.7% under Field's purchase price. Entercom Communications Corp is trading off about 2.2% on the day Tuesday. Before this latest buy, Field bought ETM at 16 other times during the past twelve months, for a total investment of $34.25M at an average of $9.66 per share.
And on Friday, Director William E. Simon Jr. bought $296,861 worth of Douglas Emmett (NYSE:DEI), buying 7,700 shares at a cost of $38.55 each. This purchase marks the first one filed by Simon Jr. in the past twelve months. Douglas Emmett is trading up about 0.5% on the day Tuesday. Simon Jr. was up about 1.4% on the buy at the high point of today's trading session, with DEI trading as high as $39.09 at last check today.
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