AmTrust Financial Services Named Top Dividend Stock With Insider Buying and 2.13% Yield (AFSI)

Apr 1 2014, 1:56pm CDT | by

In this series, we look through the most recent Dividend Channel ”DividendRank” report, and then we cherry pick only those companies that have experienced insider buying within the past six months. The officers and directors of a company tend to have a unique insider’s view of the business, and presumably the only reason an insider would choose to take their hard-earned cash and use it to buy stock 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 when stocks turn up that see insider buying, and are also top ranked, investors are wise to take notice. One such company is AmTrust Financial Services Inc (NASD: AFSI), which saw buying by Director George Karfunkel.

Click here to find out The Top DividendRank ‘ed Stocks With Insider Buying »

Back on December 18, Karfunkel invested $8,696,010.00 into 300,000 shares of AFSI, for a cost per share of $28.99. In trading on Tuesday, shares were changing hands as low as $36.77 per share, which is 26.9% above Karfunkel’s purchase price. It should be noted that Karfunkel has collected $0.20/share in dividends since the time of their purchase, so they are currently up 27.5% on their purchase from a total return basis. AmTrust Financial Services Inc shares are currently trading -1.89% on the day. The chart below shows the one year performance of AFSI shares, versus its 200 day moving average:

Looking at the chart above, AFSI’s low point in its 52 week range is $26.24 per share, with $42.64 as the 52 week high point — that compares with a last trade of $36.90. 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
12/12/2013 George Karfunkel Director 200,000 $32.48 $6,496,000.00
12/12/2013 Leah Karfunkel 209,772 $31.41 $6,589,462.95
12/18/2013 Leah Karfunkel 500,000 $30.25 $15,125,000.00
12/18/2013 George Karfunkel Director 300,000 $28.99 $8,696,010.00

The DividendRank report noted that among the coverage universe, AFSI shares displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong quarterly dividend history at AmTrust Financial Services Inc, and favorable long-term multi-year growth rates in key fundamental data points.

The report stated, ”Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That’s what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most ‘interesting’ stocks, meant for investors as a source of ideas that merit further research.

The annualized dividend paid by AmTrust Financial Services Inc is $0.80/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/28/2014. Below is a long-term dividend history chart for AFSI, which the report stressed as being of key importance. Indeed, studying a company’s past dividend history can be of good help in judging whether the most recent dividend is likely to continue.


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

/>/>
 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Daily coffee may cut Alzheimer's risk by 20 percent
London, Nov 27 (IANS) Researchers have found that drinking up to five cups of coffee per day may help curb Alzheimer's risk by 20 percent.
 
 
Experimental Ebola vaccine safe, bolsters immunity
Washington, Nov 27 (IANS) An experimental vaccine to prevent Ebola virus disease has been found to be well-tolerated and produced immune system responses in all 20 healthy adults who received it in a Phase 1 clinical trial, researchers report.
 
 
Natural shield 11,000 km above Earth stops radiation
Washington, Nov 27 (IANS) In a pioneering feat, researchers from Massachusetts Institute of Technology (MIT) and University of Colorado in Boulder have discovered an invisible shield some 11,000 kms above Earth that works against the harmful radiation belt.
 
 
Nigerian opposition criticise government for currency devaluation
Abuja, Nov 27 (IANS) The All Progressives Congress(APC), Nigeria's main opposition party, Wednesday criticised the government for its move to devalue the country's currency naira.
 
 
 

Latest from the Network

Daily coffee may cut Alzheimer's risk by 20 percent
London, Nov 27 (IANS) Researchers have found that drinking up to five cups of coffee per day may help curb Alzheimer's risk by 20 percent. Caffeine in coffee helps prevent the formation of amyloid plaques and...
Read more on Celebrity Balla
 
Kindle Black Friday 2014 Deals Live Now
As expected Amazon will have a huge Black Friday sale on the Amazon Kindle eBook reader and the Amazon Kindle Fire Tablets. The Kindle Black Friday 2014 Deals are live now. Amazon will offer the Kindle Fire HD 6 for $79...
Read more on Black Friday Countdown
 
Mandzukic's hat-trick fires Atletico Madrid to pre-quarters
Madrid, Nov 27 (IANS) Atletico Madrid secured their place in the last 16 of the Champions League, thanks to a 4-0 win at home against Olympiacos at the Vicente Calderon Stadium here. Atletico kicked off the game...
Read more on Sport Balla
 
Atletico Mineiro clinch their first Copa do Brasil title
Belo Horizonte, Nov 27 (IANS) Atletico Mineiro clinched their first Copa do Brasil title by defeating local rivals Cruziero 3-0 on aggregate in the two-legged final. Brazil international striker Diego Tardelli struck...
Read more on Sport Balla
 
Australian batsman Phillip Hughes is dead
Sydney, Nov 27 (IANS) Australian batsman Phillip Hughes who was struck on the head by a cricket ball died in hospital, Cricket Australia (CA) said Thursday. The 25-year-old Hughes, who represented the national team in...
Read more on Sport Balla
 
Ex-minister claims proof of IS presence in Pakistan
Islamabad, Nov 27 (IANS) Former interior minister and Pakistan Peoples Party (PPP) leader Rehman Malik claimed he has evidence about the presence of the Islamic State (IS) militant group in Pakistan. "Prime Minister...
Read more on Politics Balla
 
AS Monaco stun Leverkusen 1-0 in Champions League
Berlin, Nov 27 (IANS) AS Monaco needed just one shot on target to beat Bayer Leverkusen 1-0 in an UEFA Champions League Group C match. Despite the second loss in Group C Leverkusen qualified for the last 16, thanks to...
Read more on Sport Balla
 
11 killed in coal mine explosion in China
Beijing, Nov 27 (IANS) At least 11 people were killed in a coal mine explosion in China's Guizhou province Thursday, media reported. The accident happened in Songlin coal mine in Songhe town of Pan county. At the time...
Read more on Politics Balla
 
James Cameron: New Avatar films will shock
James Cameron says the new 'Avatar' films will be ''bitchin'.'' The three sequels to the 2009 blockbuster are currently in pre-production as the screenwriter puts the finishing touches to the scripts, but has hinted...
Read more on Movie Balla
 
SAARC leaders gather at Nepal resort for retreat
Kathmandu, Nov 27 (IANS) Indian Prime Minister Narendra Modi flew in an Indian Air Force chopper to the Dhulikhel resort to join other South Asian leaders at the retreat there Thursday, the concluding day of the two-...
Read more on Politics Balla