Snag This Bargain Even Cheaper Than Director Morris Did

An image of a pen and a calculator
Credit: Shutterstock photo

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 February 2, Capitol Federal Financial Inc's Director, James G. Morris, invested $37,320.00 into 3,000 shares of CFFN, for a cost per share of $12.44. 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 Capitol Federal Financial Inc (Symbol: CFFN) and achieve a cost basis even cheaper than Morris, with shares changing hands as low as $12.40 per share. It should be noted that Morris has collected $0.09/share in dividends since the time of their purchase, so they are currently up 0.4% on their purchase from a total return basis. Capitol Federal Financial Inc shares are currently trading trading flat on the day. The chart below shows the one year performance of CFFN shares, versus its 200 day moving average:

Capitol Federal Financial Inc Chart

Looking at the chart above, CFFN's low point in its 52 week range is $11.61 per share, with $13.12 as the 52 week high point - that compares with a last trade of $12.56. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
11/18/2014 James G. Morris Director 3,000 $12.86 $38,580.00
02/02/2015 James G. Morris Director 3,000 $12.44 $37,320.00

The current annualized dividend paid by Capitol Federal Financial Inc is $0.34/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 02/04/2015. Below is a long-term dividend history chart for CFFN, which can be of good help in judging whether the most recent dividend with approx. 2.7% annualized yield is likely to continue.


According to the ETF Finder at ETF Channel, CFFN makes up 1.90% of the SPDR Russell 2000 Low Volatility ETF (Symbol: SMLV) which is trading lower by about 1% on the day Friday.

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.

In This Story


Other Topics


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