Wouldn't Get Into This Car Just Yet
John Holder, a board member at auto-parts company Genuine Parts (GPC) ratcheted up his stake in the company on Dec. 31, buying 1,000 shares at an average price of $63.03. Holder had only owned 500 shares before this purchase.
In general, insiders should logically prefer to avoid doing this; instead, we would expect them to diversify their holdings away from their own company. So when we see an insider purchase, we take it as a sign that the exec is particularly confident in the stock -- and it also partially explains why, on average (though not always), insider purchases tend to be bullish signs....520 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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