Top Buys by Top Brass: CEO Carty's $627K Bet on BCEI

A company's own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. 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 — 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 the ''top brass'' over the trailing six month period, one of which was a total of $627K by Richard J. Carty, CEO at Bonanza Creek Energy, Inc. (BCEI).

START SLIDESHOW:
Click here to find out which other top insider buys by the ''top brass'' you need to know about »

Carty bets big on BCEI:
Purchased Insider Title Shares Price/Share Value
12/05/2014 Richard J. Carty President and CEO 30,000 $20.90 $627,000.00

Carty's average cost works out to $20.90/share. In trading on Tuesday, bargain hunters could buy shares of Bonanza Creek Energy, Inc. ( BCEI) and achieve a cost basis lower than Carty, with shares changing hands as low as $19.10 per share. Shares of Bonanza Creek Energy, Inc. were changing hands at $19.97 at last check, trading up about 3.8% on Tuesday. The chart below shows the one year performance of BCEI shares, versus its 200 day moving average:

Bonanza Creek Energy, Inc. Chart

Looking at the chart above, BCEI's low point in its 52 week range is $18.48 per share, with $62.94 as the 52 week high point — that compares with a last trade of $19.97.

According to the ETF Finder at ETF Channel, BCEI makes up 1.22% of the PowerShares DWA Energy Momentum Portfolio ETF ( PXI) which is trading higher by about 0.6% on the day Tuesday.

More from Stocks

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever