Get An Even Better Deal On ECL Than Director Grundhofer Did

May 8 2014, 3:31pm CDT | by

There’s an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on May 1, Ecolab, Inc.’s Director, Jerry A. Grundhofer, invested $490,517.38 into 4,700 shares of ECL, for a cost per share of $104.37. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Thursday, bargain hunters could buy shares of Ecolab, Inc. (NYSE: ECL) and achieve a cost basis even cheaper than Grundhofer, with shares changing hands as low as $104.00 per share. Ecolab, Inc. shares are currently trading down about 0.6% on the day. The chart below shows the one year performance of ECL shares, versus its 200 day moving average:

Looking at the chart above, ECL’s low point in its 52 week range is $82.58 per share, with $111.83 as the 52 week high point — that compares with a last trade of $104.51. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
05/01/2014 Jerry A. Grundhofer Director 4,700 $104.37 $490,517.38

According to the ETF Finder at ETFChannel.com, ECL makes up 4.58% of the Materials Select Sector SPDR Fund ETF (AMEX: XLB) which is trading lower by about 0.3% on the day Thursday.


Special Offer: Find out how Dave Moenning is trading around the most recent insider transactions with a free 30 day trial and a special 20% off coupon from Forbes.
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