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 Neuberger High Yield Strategies Fund ( NHS ), a filing with the SEC revealed that on Monday, Bradley Tank bought 28,000 shares of NHS, at a cost of $9.36 each, for a total investment of $262,083. Tank was up about 8.9% on the purchase at the high point of today's trading session, with NHS trading as high as $10.19 at last check today. Neuberger High Yield Strategies Fund is trading up about 1% on the day Wednesday. Before this latest buy, Tank made one other purchase in the past twelve months, buying $152,978 shares at a cost of $11.95 each.
And at Cambridge Capital Acquisition Corp ( CAMB ), there was insider buying on Monday, by CEO Benjamin Gordon who purchased 25,000 shares for a cost of $10.05 each, for a trade totaling $251,250. Before this latest buy, Gordon purchased CAMB at 6 other times during the past year, for a total investment of $201,698 at an average of $10.00 per share. Cambridge Capital Acquisition Corp is trading up about 1% on the day Wednesday. So far Gordon is in the green, up about 0.6% on their purchase based on today's trading high of $10.11.