There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on October 17, National Penn Bancshares Inc 's Director, Christian F. Martin IV, invested $10,000.00 into 973 shares of NPBC, for a cost per share of $10.28. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Tuesday, bargain hunters could buy shares of National Penn Bancshares Inc (NPBC) and achieve a cost basis even cheaper than Martin IV, with shares changing hands as low as $10.25 per share. National Penn Bancshares Inc shares are currently trading off about 0.8% on the day. The chart below shows the one year performance of NPBC shares, versus its 200 day moving average:
Looking at the chart above, NPBC's low point in its 52 week range is $8.37 per share, with $11.40 as the 52 week high point — that compares with a last trade of $10.32. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
|10/17/2013||Christian F. Martin IV||Director||973||$10.28||$10,000.00|
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