Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Gaming products specialist Scientific Games (Nasdaq: SGMS) surged as high as 12% in intraday trading on news that its executive vice chairman David L. Kennedy purchased 65,000 shares, at an average price of $8.15 a share, late last week.

So what: As the great Peter Lynch once remarked, "Insiders might sell their shares for any number of reasons, but they buy them for only one: They think the price will rise." Scientific Games has been en fuego since announcing plans to reinstate its former chief executive as the CEO last week, and this vote of confidence from Kennedy seems to be going a long way in confirming that bullish sentiment.  

Now what: With the stock now up more than 40% over just the past week, taking some profits off the table might be the prudent thing to do. I like the steps that management is taking to refocus on China and I just love big insider buying, but I always have trouble with jumping into a super-hot stock. Either way, the turnaround at Scientific Games is certainly worth following.   

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.