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 Pioneer Natural Resources ( PXD ), a filing with the SEC revealed that on Thursday, CFO Richard P. Dealy purchased 117,786 shares of PXD, for a cost of $119.85 each, for a total investment of $14.12M. Pioneer Natural Resources is trading up about 2.4% on the day Tuesday.
And at New Mountain Finance ( NMFC ), there was insider buying on Friday, by Director Steven B. Klinsky who purchased 500,000 shares at a cost of $14.14 each, for a total investment of $7.07M. Before this latest buy, Klinsky made one other purchase in the past year, buying $2M shares at a cost of $14.82 a piece. New Mountain Finance is trading up about 2.8% on the day Tuesday. Investors have the opportunity to buy NMFC even cheaper than Klinsky did, with shares trading as low as $13.26 in trading on Tuesday -- that's 6.2% under Klinsky's purchase price.