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 Biolase ( BIOL ), a filing with the SEC revealed that on Monday, Director Paul N. Clark purchased 404,653 shares of BIOL, at a cost of $2.39 each, for a total investment of $967,121. Biolase is trading down about 1.2% on the day Thursday. Before this latest buy, Clark made one other purchase in the past twelve months, buying $999,999 shares at a cost of $1.92 a piece.
And on Tuesday, Chief Executive Officer John D. McDermott bought $281,250 worth of Endologix ( ELGX ), buying 25,000 shares at a cost of $11.25 a piece. Endologix is trading up about 0.3% on the day Thursday. McDermott was up about 1.2% on the buy at the high point of today's trading session, with ELGX trading as high as $11.39 at last check today.