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 OneMain Holdings, a filing with the SEC revealed that on Monday, CEO Douglas H. Shulman bought 2,150 shares of OMF, at a cost of $41.69 each, for a total investment of $89,642. Bargain hunters are able to bag OMF even cheaper than Shulman did, with the stock changing hands as low as $37.70 in trading on Tuesday — that’s 9.6% under Shulman’s purchase price. OneMain Holdings is trading off about 0.9% on the day Tuesday. Before this latest buy, Shulman bought OMF at 7 other times during the past twelve months, for a total investment of $910,780 at an average of $52.57 per share.

And also on Monday, Chief Executive Officer Brett L. Pharr bought $82,900 worth of Pathward Financial, buying 2,500 shares at a cost of $33.16 each. Before this latest buy, Pharr bought CASH at 2 other times during the past year, for a total investment of $193,125 at an average of $38.62 per share. Pathward Financial is trading up about 2% on the day Tuesday.

VIDEO: Tuesday 8/2 Insider Buying Report: OMF, CASH

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source: Nasdaq


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