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 Intra-Cellular Therapies (ITCI), a filing with the SEC revealed that on Wednesday, Director Christopher D. Alafi purchased 170,000 shares of ITCI, for a cost of $11.73 each, for a total investment of $1.99M. Alafi was up about 18.9% on the buy at the high point of today's trading session, with ITCI trading as high as $13.95 in trading on Monday. Intra-Cellular Therapies is trading up about 10.8% on the day Monday. Before this latest buy, Alafi made one other purchase in the past year, buying $1.26M shares for a cost of $12.56 a piece.
And at Cornerstone Building Brands (CNR), there was insider buying on Thursday, by CEO James S. Metcalf who purchased 100,000 shares at a cost of $4.45 each, for a total investment of $444,580. This buy marks the first one filed by Metcalf in the past year. Cornerstone Building Brands is trading up about 6.5% on the day Monday. So far Metcalf is in the green, up about 16.1% on their buy based on today's trading high of $5.16.
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