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 Neonode ( NEON ), a filing with the SEC revealed that on Monday, CEO Bjorn Thomas Eriksson purchased 100,000 shares of NEON, for a cost of $3.07 each, for a total investment of $307,000. Neonode Inc is trading off about 10.8% on the day Monday. Before this latest buy, Eriksson purchased NEON on 2 other occasions during the past year, for a total investment of $189,305 at an average of $5.41 per share.
And at Comfort Systems USA ( FIX ), there was insider buying on Wednesday, by Director Vance W. Tang who bought 7,000 shares for a cost of $15.82 each, for a total investment of $110,740. This purchase marks the first one filed by Tang in the past twelve months. Comfort Systems USA is trading off about 2.3% on the day Monday. So far Tang is in the green, up about 4.2% on their purchase based on today's trading high of $16.48.