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 dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
At lululemon athletica ( LULU ), a filing with the SEC revealed that on Monday, Chief Product Officer Tara Poseley bought 4,000 shares of LULU, at a cost of $53.52 each, for a total investment of $214,060. Bargain hunters can snag LULU even cheaper than Poseley did, with shares trading as low as $52.00 at last check today -- that's 2.8% below Poseley's purchase price. lululemon athletica is trading down about 2.1% on the day Thursday. This purchase marks the first one filed by Poseley in the past year.
And at TCW Strategic Income Fund ( TSI ), there was insider buying on Tuesday, by Portfolio Manager Tad Rivelle who bought 20,000 shares for a cost of $5.13 each, for a total investment of $102,529. Before this latest buy, Rivelle purchased TSI at 4 other times during the past year, for a total cost of $348,131 at an average of $5.37 per share. TCW Strategic Income Fund is trading up about 0.6% on the day Thursday. Rivelle was up about 1.0% on the buy at the high point of today's trading session, with TSI trading as high as $5.18 at last check today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.