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 August 5, Provident Financial Services Inc's Director, Thomas W. Berry, invested $16,636.00 into 1,000 shares of PFS, for a cost per share of $16.64. 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 Friday, bargain hunters could buy shares of Provident Financial Services Inc (Symbol: PFS) and achieve a cost basis even cheaper than Berry, with shares changing hands as low as $16.62 per share. It should be noted that Berry has collected $0.15/share in dividends since the time of their purchase, so they are currently up 0.8% on their purchase from a total return basis. Provident Financial Services Inc shares are currently trading down about 1% on the day. The chart below shows the one year performance of PFS shares, versus its 200 day moving average:
Looking at the chart above, PFS's low point in its 52 week range is $15.78 per share, with $19.93 as the 52 week high point - that compares with a last trade of $16.67. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
Thomas W. Berry
The current annualized dividend paid by Provident Financial Services Inc is $0.60/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 08/13/2014. Below is a long-term dividend history chart for PFS, which can be of good help in judging whether the most recent dividend with approx. 3.6% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, PFS makes up 1.79% of the Proshares Ultra KBW Regional Banking ETF (Symbol: KRU) which is trading lower by about 3.1% on the day Friday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.