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 MGM Resorts International, a filing with the SEC revealed that on Wednesday, Director Paul J. Salem bought 800,000 shares of MGM, for a cost of $25.40 each, for a total investment of $20.32M. Bargain hunters can buy MGM at a price even lower than Salem did, with the stock trading as low as $24.75 in trading on Monday — that's 2.6% below Salem's purchase price. MGM Resorts International is trading down about 2% on the day Monday.
And at Affiliated Managers Group, there was insider buying on Friday, by CFO Jay C. Horgen who bought 11,000 shares for a cost of $93.19 each, for a trade totaling $1.03M. This purchase marks the first one filed by Horgen in the past twelve months. Affiliated Managers Group is trading off about 3.6% on the day Monday. Investors are able to snag AMG even cheaper than Horgen did, with shares trading as low as $90.95 in trading on Monday — that's 2.4% below Horgen's purchase price.
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