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 Chesapeake Energy Corp. ( CHK ), a filing with the SEC revealed that on Friday, Director Archie W. Dunham purchased 500,000 shares of CHK, for a cost of $23.32 each, for a total investment of $11.66M. Chesapeake Energy Corp. is trading up about 2.5% on the day Tuesday. Before this latest buy, Dunham made one other purchase in the past twelve months, buying $1.35M shares for a cost of $24.97 a piece.
And at Time Warner ( TWX ), there was insider buying on Friday, by Director William P. Barr who purchased 7,645 shares at a cost of $77.20 each, for a total investment of $590,188. Time Warner is trading up about 1.3% on the day Tuesday. Barr was up about 2.3% on the buy at the high point of today's trading session, with TWX trading as high as $78.97 in trading on Tuesday.