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.
At PIMCO Municipal Income Fund ( PMF ), a filing with the SEC revealed that on Friday, William H. Gross bought 34,033 shares of PMF, at a cost of $14.15 each, for a total investment of $481,669. So far Gross is down about 0.2% on the purchase, with the stock trading as low as $14.12 at last check today. PIMCO Municipal Income Fund is trading up about 0.2% on the day Tuesday. Before this latest buy, Gross bought PMF at 10 other times during the past year, for a total cost of $4.68M at an average of $13.77 per share.
And on Thursday, Director John Paul Cavoores bought $185,596 worth of Guidewire Software ( GWRE ), buying 5,000 shares at a cost of $37.12 a piece. Before this latest buy, Cavoores made one other purchase in the past twelve months, buying $46,978 shares at a cost of $46.98 a piece. Guidewire Software is trading up about 0.2% on the day Tuesday. Cavoores was up about 5.9% on the buy at the high point of today's trading session, with GWRE trading as high as $39.32 at last check today.