Top Buys by Top Brass: Chief Financial Officer Young's $115.7K Bet on ADM

Feb 5 2014, 1:52pm CST | by

A company’s own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. 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 — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by the ”top brass” over the trailing six month period, one of which was a total of $115.7K by Ray G. Young, Chief Financial Officer at Archer Daniels Midland Co. (NYSE: ADM).

Click here to find out which other top insider buys by the ”top brass” you need to know about »

Young bets big on ADM:

Purchased Insider Title Shares Price/Share Value
02/05/2014 Ray G. Young Chief Financial Officer 3,000 $38.57 $115,707.00

Young’s average cost works out to $38.57/share. In trading on Wednesday, bargain hunters could buy shares of Archer Daniels Midland Co. (NYSE: ADM) and achieve a cost basis lower than Young, with shares changing hands as low as $37.92 per share. Shares of Archer Daniels Midland Co. were changing hands at $38.77 at last check, trading up about 1.4% on Wednesday. The chart below shows the one year performance of ADM shares, versus its 200 day moving average:

Looking at the chart above, ADM’s low point in its 52 week range is $29.27 per share, with $43.99 as the 52 week high point — that compares with a last trade of $38.77.

The current annualized dividend paid by Archer Daniels Midland Co. is $0.96/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 02/18/2014. Below is a long-term dividend history chart for ADM, which can be of good help in judging whether the most recent dividend with approx. 2.5% annualized yield is likely to continue.

According to the ETF Finder at ETFChannel.com, ADM makes up 8.08% of the Global Agriculture Portfolio ETF (NASD: PAGG) which is trading lower by about 0.4% on the day Wednesday.


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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