Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Tuesday, TransDigm Group ( TDG )'s Director, Robert J. Small, made a $24.45M purchase of TDG, buying 104,967 shares at a cost of $232.95 a piece. Small was up about 3.5% on the purchase at the high point of today's trading session, with TDG trading as high as $241.05 in trading on Thursday. TransDigm Group is trading up about 3.4% on the day Thursday. Before this latest buy, Small bought TDG on 2 other occasions during the past year, for a total investment of $43.07M at an average of $246.58 per share.
And at Tandy Leather Factory ( TLF ), there was insider buying on Wednesday, by Director James C. Pappas who purchased 482,409 shares for a cost of $7.25 each, for a total investment of $3.5M. Before this latest buy, Pappas bought TLF at 2 other times during the past twelve months, for a total cost of $885,191 at an average of $7.58 per share. Tandy Leather Factory is trading up about 1% on the day Thursday. Pappas was up about 2.7% on the purchase at the high point of today's trading session, with TLF trading as high as $7.45 in trading on Thursday.