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 Thursday, NexPoint Credit Strategies Fund (NHF)'s Director, James D. Dondero, made a $1.09M purchase of NHF, buying 136,673 shares at a cost of $7.95 a piece. Investors have the opportunity to bag NHF at a price even lower than Dondero did, with the stock changing hands as low as $7.65 in trading on Tuesday which is 3.7% under Dondero's purchase price. Before this latest buy, Dondero bought NHF on 9 other occasions during the past year, for a total investment of $10.08M at an average of $6.98 per share.
And also on Thursday, Chief Executive Officer John F. Barry purchased $1.00M worth of Prospect Capital (PSEC), purchasing 96,000 shares at a cost of $10.46 a piece. This purchase marks the first one filed by Barry in the past year. Prospect Capital is trading up about 1.4% on the day Tuesday.
