Grab This Deal Even Lower Than Director Baker Did

Jan 10 2014, 1:44pm CST | 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 October 3, First Niagara Financial Group, Inc.’s Director, Thomas E. Baker, invested $24,439.47 into 2,389 shares of FNFG, for a cost per share of $10.23. 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 Friday, bargain hunters could buy shares of First Niagara Financial Group, Inc. (NASD: FNFG) and achieve a cost basis even cheaper than Baker, with shares changing hands as low as $10.18 per share. It should be noted that Baker has collected $0.08/share in dividends since the time of their purchase, so they are currently up 0.3% on their purchase from a total return basis. First Niagara Financial Group, Inc. shares are currently trading off about 0.2% on the day. The chart below shows the one year performance of FNFG shares, versus its 200 day moving average:

Looking at the chart above, FNFG’s low point in its 52 week range is $7.68 per share, with $11.34 as the 52 week high point — that compares with a last trade of $10.21. 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
10/03/2013 George M. Philip Director 555 $10.23 $5,678.23
10/03/2013 Thomas E. Baker Director 2,389 $10.23 $24,439.47
10/03/2013 James R. Boldt Director 1,222 $10.23 $12,501.06

The current annualized dividend paid by First Niagara Financial Group, Inc. is $0.32/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/06/2013. Below is a long-term dividend history chart for FNFG, which can be of good help in judging whether the most recent dividend with approx. 3.1% annualized yield is likely to continue.

According to the ETF Finder at ETFChannel.com, FNFG makes up 1.77% of the SPDR S&P Bank ETF (AMEX: KBE) which is trading lower by about 0.3% on the day Friday.


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.


Source: Forbes Business

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