The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $1.6M invested across 6 purchases by Ernest Mario, Director at Boston Scientific Corp. (NYSE: BSX).
Click here to find out which other top insider buys by company directors you need to know about »
Mario bets big on BSX:
Purchased | Insider | Title | Shares | Price/Share | Value |
---|---|---|---|---|---|
08/02/2011 | Ernest Mario | Director | 100,000 | $6.82 | $682,230.00 |
08/03/2011 | Ernest Mario | Director | 100 | $6.70 | $669.80 |
10/25/2011 | Ernest Mario | Director | 25,000 | $5.50 | $137,500.00 |
10/26/2011 | Ernest Mario | Director | 25,000 | $5.45 | $136,250.00 |
11/21/2011 | Ernest Mario | Director | 25,000 | $5.30 | $132,500.00 |
11/28/2011 | Ernest Mario | Director | 100,000 | $5.40 | $540,000.00 |
Mario's average cost works out to $5.92/share. In trading on Wednesday, bargain hunters could buy shares of Boston Scientific Corp. (NYSE: BSX) and achieve a cost basis lower than Mario, with shares changing hands as low as $5.23 per share. Shares of Boston Scientific Corp. were changing hands at $5.30 at last check, trading down about 0.9% on Wednesday. The chart below shows the one year performance of BSX shares, versus its 200 day moving average:
Looking at the chart above, BSX's low point in its 52 week range is $5.01 per share, with $7.96 as the 52 week high point — that compares with a last trade of $5.30.
According to the ETF Finder at ETF Channel, BSX makes up 4.19% of the iShares Dow Jones U.S. Medical Devices Index Fund ETF (AMEX: IHI) which is trading lower by about 1.1% on the day Wednesday.
See what other ETFs contain BSX »
See what other stocks are held by IHI »
BSX operates in the Medical Instruments & Supplies sector, among companies like Conceptus Inc. (NASD: CPTS) which is off about 1.5% today, and OraSure Technologies Inc. (NASD: OSUR) trading lower by about 0.9%. Below is a three month price history chart comparing the stock performance of BSX, versus CPTS and OSUR.