Markets

Bag This Bargain Even Cheaper Than CIO Ingram III Did

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on June 9, Erie Indemnity Co.'s CIO, Robert C. Ingram III, invested $199,750.00 into 2,500 shares of ERIE, for a cost per share of $79.90. Bargain hunters tend to pay particular attention to insider buys like this one, because 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. In trading on Wednesday, bargain hunters could buy shares of Erie Indemnity Co. (Symbol: ERIE) and achieve a cost basis even cheaper than Ingram III, with shares changing hands as low as $79.58 per share. It should be noted that Ingram III has collected $0.68/share in dividends since the time of their purchase, so they are currently up 0.5% on their purchase from a total return basis. Erie Indemnity Co. shares are currently trading up about 0.6% on the day. The chart below shows the one year performance of ERIE shares, versus its 200 day moving average:

Erie Indemnity Co. Chart

Looking at the chart above, ERIE's low point in its 52 week range is $74.99 per share, with $94.00 as the 52 week high point - that compares with a last trade of $80.65. By comparison, below is a table showing the prices at which ERIE insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
06/08/2015 George D. Dufala Executive Vice President 250 $80.64 $20,160.00
06/09/2015 Robert C. Ingram III Executive VP & CIO 2,500 $79.90 $199,750.00
The current annualized dividend paid by Erie Indemnity Co. is $2.724/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 10/01/2015. Below is a long-term dividend history chart for ERIE, which can be of good help in judging whether the most recent dividend with approx. 3.4% annualized yield is likely to continue.

ERIE+Dividend+History+Chart
According to the ETF Finder at ETF Channel, ERIE makes up 1.80% of the PowerShares High Yield Equity Dividend Achievers Portfolio ETF (Symbol: PEY) which is trading up by about 1.2% on the day Wednesday.

Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »

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


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

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