Snag Shares of NGL Cheaper Than the CFO 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 November 21, NGL Energy Partners LP's CFO, Robert W. Karlovich III, invested $116,643.00 into 10,000 shares of NGL, for a cost per share of $11.66. 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 NGL Energy Partners LP (Symbol: NGL) and achieve a cost basis 2.7% cheaper than Karlovich III, with shares changing hands as low as $11.35 per share. It should be noted that Karlovich III has collected $0.39/share in dividends since the time of their purchase, so they are currently up 0.6% on their purchase from a total return basis. NGL Energy Partners LP shares are currently trading off about 2.9% on the day. The chart below shows the one year performance of NGL shares, versus its 200 day moving average:

NGL Energy Partners LP Chart

Looking at the chart above, NGL's low point in its 52 week range is $8.575 per share, with $23.19 as the 52 week high point - that compares with a last trade of $11.47. By comparison, below is a table showing the prices at which NGL insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
11/21/2017 Robert W. Karlovich III CFO, Executive Vice President 10,000 $11.66 $116,643.00

The current annualized dividend paid by NGL Energy Partners LP is $1.56/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 02/05/2018. Below is a long-term dividend history chart for NGL, which can be of good help in judging whether the most recent dividend with approx. 13.3% annualized yield is likely to continue.


NGL makes up 3.60% of the Junior MLP ETF (Symbol: MLPJ)

Click here to find out which 9 other energy stock 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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