US Airways Insider Buying Is a Good Sign

US Airways Group (LCC) CEO Doug Parker bought 197,000 shares of stock according to filings with the Securities and Exchange Commission on Tuesday. According to Reuters, that brings his direct stake in the company to 470,055 shares after publicly vowing to invest the equivalent of his 2008 salary in the company.

Whether that will turn out to be just a token gesture remains to be seen. Plenty of other publicly traded companies with depressed stock prices and less than poor fundamentals have seen some insider buying, trying to spur some confidence but to no effect. Take the June open market purchases of MBIA Chairman Joseph Brown who bought 159,000 shares, Ambac CEO Michael Callen along with other directors who purchased thousands of shares, and General Electric’s Jeffrey Immelt’s $3.5 million purchase of common stock in late May. If there is one reason to get long the stock it would be the potential for a big drop in the price of oil which might just be beginning to play out today. Crude futures on the New York Mercantile Exchange are off by $2.38 to $134.30 a barrel while US Airways is up 3.65% to $3.12.

Comments

[BioInvestor]

Maybe he was closing out a short position on LCC!!! ;)