Top Insiders Take Advantage Of Newell Brands Pullback To Increase Stakes

• The post-earnings selloff at a leading consumer goods company has brought out insiders.
• The CEO and the president together have acquired almost 24,000 shares so far this week.
• Insider buying often can be seen as a good sign for investors.

Conventional wisdom says that insiders and 10 percent owners really only buy shares of a company for one reason -- they believe the stock price will rise and they want to profit from it. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty. Case in point: recent notable buys at Newell Brands Inc NWL.

CEO Michael Polk and President Mark Tarchetti together have bought almost 24,000 shares of the company this week. The share prices for those purchase ranged from $47.82 to $49.68. That cost them more than $1.16 million. The buys came in the wake of the third-quarter earnings report and the recently announced strategic growth plan.

Newell Brands has a market capitalization of around $23 billion and a dividend yield near 1.5 percent. The consensus recommendation of analysts is to buy shares. The stock has retreated around 7 percent since in the past week, and more than 12 percent from a 52-week high of $55.45 reached in mid-August, to the $48.02 where it was trading Tuesday.

Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.