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 cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Friday, Aehr Test Systems' Director, Howard T. Slayen, made a $310,000 buy of AEHR, purchasing 20,000 shares at a cost of $15.50 each. Bargain hunters can buy AEHR at a price even lower than Slayen did, with the stock trading as low as $13.26 at last check today -- that's 14.5% below Slayen's purchase price. Aehr Test Systems is trading up about 4.6% on the day Monday. Before this latest buy, Slayen made one other purchase in the past twelve months, buying $28,140 shares at a cost of $40.20 a piece.
And on Wednesday, Chief Executive Officer Thomas L. Monahan purchased $302,825 worth of Heidrick & Struggles International, purchasing 7,500 shares at a cost of $40.38 a piece. Heidrick & Struggles International is trading off about 4.1% on the day Monday. Investors have the opportunity to pick up HSII even cheaper than Monahan did, with shares trading as low as $36.08 at last check today -- that's 10.6% under Monahan's purchase price.
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