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 Tuesday, Vector Group Ltd (VGR)’s Executive VP, Richard Lampen, made a $885,250 buy of VGR, purchasing 50,000 shares at a cost of $17.70 each. Vector Group Ltd is trading up about 0.9% on the day Wednesday. This purchase marks the first one filed by Lampen in the past twelve months. In the past year, 1 other insider purchased VGR, buying $8.85M shares at a cost of $17.70 each.
And on Monday, President William C. Gautreaux purchased $468,600 worth of Inergy L.P. (NRGY), purchasing 20,000 shares at a cost of $23.43 a piece. In the past twelve months, 2 other insiders bought NRGY, in 3 transactions, for a total cost of $389,049 at an average of $24.62 per share. Inergy L.P. is trading off about 1.8% on the day Wednesday. So far Gautreaux is in the green, up about 2.4% on their purchase based on today’s trading high of $24.00.