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 Medley Capital, a filing with the SEC revealed that on Tuesday, Director Seth Taube purchased 382,300 shares of MCC, for a cost of $7.25 each, for a total investment of $2.77M. Bargain hunters can pick up MCC even cheaper than Taube did, with shares trading as low as $7.01 at last check today which is 3.4% under Taube's purchase price. Medley Capital is trading up about 0.7% on the day Wednesday. Before this latest buy, Taube purchased MCC on 4 other occasions during the past twelve months, for a total cost of $4.01M at an average of $7.55 per share.
And on Monday, Director Richard Abbe purchased $320,755 worth of Form Holdings, purchasing 152,005 shares at a cost of $2.11 each. Form Holdings is trading off about 0.9% on the day Wednesday.