Insiders Have Been Buying These Stocks

The President and CEO of Insmed Incorporated (NASDAQ:INSM) bought almost 11,000 shares of the stock on January 9^th at $6.90 per share, roughly doubling his direct holdings. Insmed is a $210 million market cap biotech company (almost 200,000 shares have been traded per day in average for the last three months, so there is over $1 million in daily dollar volume). As a development stage company Insmed is not expected to be profitable in 2013; however, the stock has roughly doubled in the last year. We wouldn’t take any action but the CEO’s purchase is noted in case there are any further developments at the company.

John Cavoores, a Board member at Guidewire Software Inc (NYSE:GWRE), bought 1,000 shares of the stock at an average price of $31.06 per share. Guidewire is up strongly from its IPO price (the company went public about a year ago), though while revenue is up the company actually reported negative operating income in its most recent fiscal quarter. The stock trades at 78 times consensus earnings for the fiscal year ending in June 2014 and when we looked at it we thought that it and its peers were not good values. Read more about Guidewire.

Disclosure: I own no shares of any stocks mentioned in this article.