Kaman Insiders Buy, but It Looks Rich

A Form 4 filed with the Securities and Exchange Commission has disclosed that Neal Keating, the CEO and chairman of the board of directors at Kaman (KAMN), purchased 2,500 shares of the company's stock on June 17 at an average price of $32.59 per share. Keating has been a frequent buyer of the aerospace and industrial component company's stock so far this year, and he has now purchased more than 11,000 shares since the beginning of March at prices generally between $32 and $35.

We track insider purchases because studies show that, on average, stocks bought by insiders narrowly outperform the market. We believe that this is because insiders have to be more confident in the company than usual in order to buy, rather than diversifying their wealth. We'd note that two additional company officers were buying the stock in May. Studies indicate that these consensus insider purchases are somewhat more bullish signals....455 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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