Top Buys by Directors: Dunham's $8.8M Bet on CHK
The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money - maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $8.8M invested across 2 purchases by Archie W. Dunham, Director at Chesapeake Energy Corp. (Symbol: CHK).
Archie W. Dunham
Archie W. Dunham
Dunham's average cost works out to $6.51/share. In trading on Friday, bargain hunters could buy shares of Chesapeake Energy Corp. (Symbol: CHK) and achieve a cost basis lower than Dunham, with shares changing hands as low as $6.02 per share. Shares of Chesapeake Energy Corp. were changing hands at $6.07 at last check, trading down about 0.2% on Friday. The chart below shows the one year performance of CHK shares, versus its 200 day moving average:
Looking at the chart above, CHK's low point in its 52 week range is $1.85 per share, with $8.20 as the 52 week high point - that compares with a last trade of $6.07.
According to the ETF Finder at ETF Channel, CHK makes up 3.17% of the First Trust Natural Gas ETF (Symbol: FCG) which is trading lower by about 0.2% 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.
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