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 Tuesday, Tempur Sealy International ( TPX )'s CEO Scott L. Thompson, made a $1.00M purchase of TPX, buying 16,679 shares at a cost of $59.96 each. So far Thompson is in the green, up about 6.2% on their buy based on today's trading high of $63.70. Tempur Sealy International is trading up about 4.9% on the day Wednesday. This purchase marks the first one filed by Thompson in the past twelve months.
And on Monday, CFO Michael S. Herring purchased $460,640 worth of Pandora Media ( P ), purchasing 50,000 shares at a cost of $9.21 a piece. Pandora Media is trading up about 4.3% on the day Wednesday. Bargain hunters have the opportunity to bag P at a price even lower than Herring did, with shares changing hands as low as $8.80 in trading on Wednesday which is 4.5% under Herring's purchase price.
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