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 Chesapeake Energy Corp. ( CHK ), a filing with the SEC revealed that on Tuesday, Director Archie W. Dunham bought 1,200,000 shares of CHK, for a cost of $2.22 each, for a total investment of $2.66M. Investors are able to bag CHK at a price even lower than Dunham did, with the stock trading as low as $1.93 at last check today - that's 12.9% under Dunham's purchase price. Chesapeake Energy Corp. is trading off about 0.2% on the day Thursday. This purchase marks the first one filed by Dunham in the past year.
And on Monday, James Gero bought $948,600 worth of LCI Industries ( LCII ), buying 15,000 shares at a cost of $63.24 each. Before this latest buy, Gero purchased LCII on 4 other occasions during the past twelve months, for a total investment of $2.92M at an average of $100.65 per share. LCI Industries is trading up about 2.6% on the day Thursday. So far Gero is in the green, up about 5.6% on their buy based on today's trading high of $66.77.
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