Insider Action at a REIT
Filings with the Securities and Exchange Commission have disclosed that two insiders at Newcastle Investment (NCT) each purchased close to 100,000 shares of the company's stock at an average price of $10.48 in a public offering this month. Randal Nardone, who serves as the company's secretary, was one of the buyers. Nardone had previously bought shares at an average price of $9.35 in January and at $6.70 last July.
Newcastle is up 25% year to date and over 100% in the last year, and the current stock price is $11.20. Insider purchases, particularly when multiple insiders are buying the stock, are often seen as bullish signals. We believe that they at least serve as a sign of higher-than-average confidence in the company, since by buying more shares an insider increases his or her exposure to the company and therefore to company-specific risks, rather than diversifying, as economy theory would generally predict....503 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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