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 MAXIMUS ( MMS ), a filing with the SEC revealed that on Wednesday, Director Peter Pond purchased 14,375 shares of MMS, for a cost of $52.27 each, for a total investment of $751,381. MAXIMUS is trading up about 2.5% on the day Friday.
And on Tuesday, Director Joseph V. Russell purchased $616,188 worth of Corrections Corporation of America ( CXW ), purchasing 25,000 shares at a cost of $24.65 each. Before this latest buy, Russell made one other buy in the past twelve months, purchasing $1.08M shares at a cost of $30.98 each. Corrections Corporation of America is trading up about 2.9% on the day Friday. Russell was up about 5.0% on the purchase at the high point of today's trading session, with CXW trading as high as $25.87 in trading on Friday.