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 Matador Resources ( MTDR ), a filing with the SEC revealed that on Thursday, Director Carlos M. Sepulveda purchased 5,000 shares of MTDR, at a cost of $25.00 each, for a total investment of $125,000. Matador Resources is trading up about 0.6% on the day Friday. Before this latest buy, Sepulveda made one other purchase in the past year, buying $38,125 shares for a cost of $15.25 a piece.
And at Datawatch ( DWCH ), there was insider buying on Tuesday, by Chief Financial Officer James Eliason who purchased 8,500 shares for a cost of $13.48 each, for a total investment of $114,580. This buy marks the first one filed by Eliason in the past twelve months. Datawatch is trading down about 5.9% on the day Friday. So far Eliason is in the green, up about 21% on their purchase based on today's trading high of $16.31.