In trading on Thursday, shares of Campus Crest Communities, Inc.
(Symbol: CCG) touched a new 52-week low of $7.88/share. That's a
$4.16 share price drop, or -34.55% decline from the 52-week high of
$12.04 set back on 07/31/2013. Large percentage drops always
require that the stock post even larger percentage gains from the
low in order to recover the old price point, and for CCG that means
the stock would have to gain 52.79% to get back to the 52-week
high. For a move like that, Campus Crest Communities, Inc. would
need fundamental strength at the business level.
Here's a rhetorical question: Who knows more about fundamentals
at the business level than the company's own insiders? So let's
take a look to see whether any company insiders were taking the
other side of the trade as CCG shares were being sold down to this
new 52-week low, focusing on the most recent trailing six month
period. As summarized by the table below, CCG has seen 3 different
instances of insiders buying over the past six months.
||Executive Vice President
||Ted W. Rollins
||Chairman and CEO
||Donald L. Bobbitt Jr.
||Chief Financial Officer
In the short run, while the new 52-week low suggests the stock is
at the cheapest price and perhaps therefore the best bargain it has
been over the last 52 weeks, the low print also means anyone who
has purchased the stock over that timeframe is staring at an
unrealized loss. Oftentimes, that factor drives a stock's technical
analysis metrics by creating overhead resistance, with investors
who bought higher now anxious to reverse their trade once they are
back to breakeven. The chart below shows where CCG has traded over
the past year, with the 50-day and 200-day moving averages
Time will tell whether the insider purchases foretell a future
rebound for CCG shares, which are presently showing a last trade of
$8.11/share, slightly above the new 52-week low.
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