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Covance Inc. (CVD) CEO Joseph L Herring buys 20,000 Shares

August 03, 2010 | About:
insider

insider

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Chairman and CEO of Covance Inc. (CVD) Joseph L Herring buys 20,000 shares of CVD on 08/02/2010 at an average price of $38.95 a share.

Covance Inc. has a market cap of $2.56 billion; its shares were traded at around $39.58 with a P/E ratio of 16.5 and P/S ratio of 1.3. Covance Inc. had an annual average earning growth of 13.4% over the past 10 years. GuruFocus rated Covance Inc. the business predictability rank of 3-star.

CVD is in the portfolios of Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC, RS Investment Management.


This is the insider trade history vs. stock price of CVD. For the complete insider trading history of CVD, click here.




Directors and Officers Recent Trades:


  • Buy: Director Joseph C Scodari bought 200 shares of CVD stock on 06/17/2010 at the average price of 54.55. Joseph C Scodari owns at least 700 shares after this. The price of the stock has decreased by 27.44% since.

  • Sell: Corporate Sr. Vice President Donald Kraft sold 34,979 shares of CVD stock on 06/21/2010 at the average price of 55.12. Donald Kraft owns at least 47,084 shares after this. The price of the stock has decreased by 28.19% since.


About the author:

GuruFocus - Stock Picks and Market Insight of Gurus

Tickers in the article:

  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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Why CEOs Are Buying Stocks Of Their Own Companies?

  1. As legendary investor Peter Lynch said: "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
  2. TOP EXECUTIVES like CEOs and CFOs are savvy buyers of their companies' shares. One long-term study showed that they beat the market on average by six percentage points a year.
  3. Another study found that the aggregated activities of insiders can serve as a good indicator to locate market bottoms. Insiders as a whole are smart investors of their own companies.

Click it to Check Out What the CEO Are Trading


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