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.
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.
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Why CEOs Are Buying Stocks Of Their Own Companies?
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."
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.
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.
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