Top Buys by Top Brass: EVP Meier's $168.4K Bet on OMI

May 12 2014, 11:24am CDT | 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 $168.4K invested across 2 purchases by Richard A. Meier, EVP, Chief Financial Officer at Owens & Minor, Inc. (NYSE: OMI).

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

Meier bets big on OMI:

Purchased Insider Title Shares Price/Share Value
02/28/2014 Richard A. Meier EVP, Chief Financial Officer 2,500 $34.85 $87,125.00
05/07/2014 Richard A. Meier EVP, Chief Financial Officer 2,500 $32.50 $81,250.00

Meier’s average cost works out to $33.67/share. In trading on Monday, bargain hunters could buy shares of Owens & Minor, Inc. (NYSE: OMI) and achieve a cost basis lower than Meier, with shares changing hands as low as $33.48 per share. Shares of Owens & Minor, Inc. were changing hands at $33.73 at last check, trading up about 1.2% on Monday. The chart below shows the one year performance of OMI shares, versus its 200 day moving average:

Looking at the chart above, OMI’s low point in its 52 week range is $31.71 per share, with $38.55 as the 52 week high point — that compares with a last trade of $33.73.

The current annualized dividend paid by Owens & Minor, Inc. is $1.00/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/12/2014. Below is a long-term dividend history chart for OMI, which can be of good help in judging whether the most recent dividend with approx. 3.0% annualized yield is likely to continue.

According to the ETF Finder at ETFChannel.com, OMI makes up 2.01% of the SPDR S&PHealth Care Services ETF (AMEX: XHS) which is trading up by about 1.9% on the day Monday.


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.
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