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: Shares of hospital software specialist MedAssets
So what: As legendary investor Peter Lynch famously wrote, "Insiders might sell their shares for any number of reasons, but they buy them for only one: They think the price will rise." Given the relatively large size of the purchase, investors have good reason to interpret the disclosure as a pretty good buy signal.
Now what: Don't let today's pop keep you from looking into the stock. Even with today's rally, MedAssets shares are still down more than 50% year-to-date and sport a cheapish forward P/E of about nine. Fools know never to follow insiders blindly into a stock, but Wesson's big buy seems to confirm that the stock represents at least a decent bargain opportunity.
Interested in more info on MedAssets? Add it to your watchlist.