Top Buys by Directors: Gray's $406.8K Bet on RSPP

The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock 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 company directors over the trailing six month period, one of which was a total of $406.8K by Steven D. Gray, Chief Executive Officer at RSP Permian Inc. (RSPP).

START SLIDESHOW:
Click here to find out which other top insider buys by company directors you need to know about »

Gray bets big on RSPP:
Purchased Insider Title Shares Price/Share Value
12/09/2014 Steven D. Gray Chief Executive Officer 20,000 $20.34 $406,800.00

Gray's average cost works out to $20.34/share. In trading on Wednesday, bargain hunters could buy shares of RSP Permian Inc. ( RSPP) and achieve a cost basis lower than Gray, with shares changing hands as low as $19.92 per share. Shares of RSP Permian Inc. were changing hands at $20.63 at last check, trading off about 3.7% on Wednesday. The chart below shows the one year performance of RSPP shares, versus its 200 day moving average:

RSP Permian Inc. Chart

Looking at the chart above, RSPP's low point in its 52 week range is $19.36 per share, with $33.67 as the 52 week high point — that compares with a last trade of $20.63.

According to the ETF Finder at ETF Channel, RSPP makes up 1.61% of the SPDR S&P Oil & Gas Exploration & Production ETF ( XOP) which is trading lower by about 5.4% on the day Wednesday.

More from Stocks

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat