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.
At Advance Auto Parts ( AAP ), a filing with the SEC revealed that on Wednesday, Director Jeffrey C. Smith bought 150,000 shares of AAP, at a cost of $152.73 each, for a total investment of $22.91M. Smith was up about 1.8% on the buy at the high point of today's trading session, with AAP trading as high as $155.52 at last check today. Advance Auto Parts is trading up about 0.9% on the day Thursday.
And on Tuesday, VP, Corporate Strategy Eric Siebert bought $203,427 worth of Energy Recovery ( ERII ), buying 21,389 shares at a cost of $9.51 each. Energy Recovery is trading up about 1% on the day Thursday. Siebert was up about 11.9% on the buy at the high point of today's trading session, with ERII trading as high as $10.64 at last check today.