Markets
NLY

New 52-Week Low Could Prompt More Insider Buying At NLY

In trading on Monday, shares of Annaly Capital Management Inc (Symbol: NLY) touched a new 52-week low of $8.98/share. That's a $2.54 share price drop, or -22.05% decline from the 52-week high of $11.52 set back on 12/11/2014. 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 NLY that means the stock would have to gain 28.29% to get back to the 52-week high. For a move like that, Annaly Capital Management 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 NLY 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, NLY has seen 4 different instances of insiders buying over the past six months.

Purchased Insider Title Shares Price/Share Value
08/07/2015 Kevin Keyes President 300,000 $10.08 $3,024,000.00
08/11/2015 Kevin Brady Director 48,750 $10.16 $495,300.00
08/17/2015 Glenn Votek Chief Financial Officer 25,000 $10.36 $259,000.00
08/21/2015 Wellington Denahan Chairman of Board & CEO 100,000 $10.33 $1,033,000.00

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 NLY has traded over the past year, with the 50-day and 200-day moving averages included.

Annaly Capital Management Inc Moving Averages Chart

Time will tell whether the insider purchases foretell a future rebound for NLY shares, which are presently showing a last trade of $9.06/share, slightly above the new 52-week low.

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.


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

In This Story

NLY

Other Topics

Investing

Latest Markets Videos

    BNK Invest

    BNK Invest Inc. provides investment services and information. BNK Invest owns and operates a market news family of websites including DividendChannel, ETFChannel, StockOptionsChannel, and others, which make up an investor community featuring stock message boards, ratings, research, and strategies. BNK Invest caters to investing firms and individual investors internationally.

    Learn More