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 $2M by Gary G. Friedman, CEO at Restoration Hardware Holdings, Inc. (NYSE: RH).
Click here to find out which other top insider buys by company directors you need to know about »
Friedman bets big on RH:
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 09/22/2014 | Gary G. Friedman | Chairman & CEO | 25,974 | $76.82 | $1,995,322.68 |
Friedman's average cost works out to $76.82/share. Shares of Restoration Hardware Holdings, Inc. were changing hands at $89.55 at last check, trading down about 2.5% on Thursday. The chart below shows the one year performance of RH shares, versus its 200 day moving average:
Looking at the chart above, RH's low point in its 52 week range is $54.61 per share, with $100.66 as the 52 week high point — that compares with a last trade of $89.55.
According to the ETF Finder at ETFChannel.com, RH makes up 3.00% of the SPDR S&P Homebuilders ETF (AMEX: XHB) which is trading higher by about 0.8% on the day Thursday.
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