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.
On Friday, Yum China Holdings ( YUMC )'s Chief Executive Officer, Muktesh Pant, made a $3.12M purchase of YUMC, buying 100,000 shares at a cost of $31.17 a piece. So far Pant is in the green, up about 2.6% on their purchase based on today's trading high of $31.97. Yum China Holdings is trading up about 2% on the day Tuesday. This buy marks the first one filed by Pant in the past year.
And on Thursday, President Erik Mervin Herzfeld bought $103,866 worth of Herzfeld Caribbean Basin Fund ( CUBA ), buying 15,000 shares at a cost of $6.92 a piece. This purchase marks the first one filed by Herzfeld in the past year. Herzfeld Caribbean Basin Fund is trading up about 0.1% on the day Tuesday.