Executive Vice President & CFO of Ascena Retail Group Inc. (ASNA) Armand Correia sells 75,000 shares of ASNA on 01/21/2011 at an average price of $27.03 a share.
Ascena Retail has a market cap of $2.12 billion; its shares were traded at around $26.99 with a P/E ratio of 13 and P/S ratio of 0.9.
Sell: SVP, General Counsel Gene Wexler sold 16,000 shares of ASNA stock on 01/18/2011 at the average price of 26.56. Gene Wexler owns at least 12,513 shares after this. The price of the stock has increased by 1.62% since.
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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