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 Union Pacific, a filing with the SEC revealed that on Tuesday, Director William J. Delaney III bought 15,000 shares of UNP, at a cost of $138.20 each, for a total investment of $2.07M. So far Delaney III is in the green, up about 3.1% on their purchase based on today's trading high of $142.55. Union Pacific is trading down about 0.2% on the day Friday. Before this latest buy, Delaney III made one other purchase in the past twelve months, buying $870,300 shares at a cost of $174.06 each.
And at Assured Guaranty, there was insider buying on Monday, by Director Thomas W. Jones who purchased 5,000 shares at a cost of $27.60 each, for a trade totaling $137,990. This purchase marks the first one filed by Jones in the past year. Assured Guaranty is trading down about 1% on the day Friday. Investors are able to bag AGO at a price even lower than Jones did, with the stock changing hands as low as $22.66 at last check today -- that's 17.9% below Jones's purchase price.
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