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Bargain Hunters Take Note: Insider Cluster-Buying At NLY


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A particularly strong insider buying signal is what we call a "cluster-buy" where three or more different insiders make open market purchases within a short period of one another. At Annaly Capital Management Inc (Symbol: NLY), 3 different insiders purchased 450,000 shares at an average price of $9.60/share, for a total of $4.32M, with the most recent purchase on May 14, 2019.

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. So when multiple insiders all decide to make purchases around the same time, it could be a strong indication that the stock is undervalued. Below is a table summarizing the insider buys that make up this "cluster":

Purchased Insider Title Shares Price/Share Value
05/06/2019 Kevin Keyes Chairman, CEO & President 300,000 $9.62 $2,887,470.00
05/13/2019 David L. Finkelstein Chief Investment Officer 100,000 $9.56 $955,660.00
05/14/2019 Anthony C. Green Chief Corporate Officer, CLO 50,000 $9.56 $478,000.00

The chart below shows the one year performance of NLY shares, versus its 200 day moving average. Note that NLY's low point in its 52 week range is $9.50 per share, with $10.779 as the 52 week high point - that compares with a last trade of $9.55, with shares currently trading up about 0.2% on the day.

Annaly Capital Management Inc Chart

The current annualized dividend paid by Annaly Capital Management Inc is $1.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/28/2019. Below is a long-term dividend history chart for NLY, which can be of good help in judging whether the most recent dividend with approx. 12.6% annualized yield is likely to continue.

NLY+Dividend+History+Chart

Ten Bargains You Can Buy Cheaper Than The Insiders Did »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Stocks
Referenced Symbols: NLY



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