The officers and directors of a company tend to have a unique inside view into the business, so when these insiders make purchases, investors are wise to take notice. Presumably the only reason for a company insider to 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.
Within the 30 components of the Dow Jones Industrial Average, only seven companies have experienced insider buying over the trailing six month period, one of which was Coca-Cola (KO) , where an investment totaling $398.1K was made by CEO Ahmet Muhtar Kent. Click Here to Learn Which Other Six Dow Components Also Had Recent Insider Buying »
Kent bets big on KO:
|02/25/2014||Ahmet Muhtar Kent||Chairman & CEO||10,500||$37.91||$398,050.80|
Kent’s average cost works out to $37.91 per share. In trading on Thursday, bargain hunters could buy shares of Coca-Cola and achieve a cost basis lower than Kent, with shares changing hands as low as $37.80 per share.
The chart below shows the one year performance of KO shares, versus its 200 day moving average:
Looking at the chart above, KO’s low point in its 52 week range is $36.83 per share, with $43.43 as the 52 week high point — that compares with a last trade of $37.96.
The current annualized dividend paid by Coca-Cola Co is $1.22 per share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 03/12/2014. Below is a long-term dividend history chart for KO, which can be of good help in judging whether the most recent dividend with approx. 3.2% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, KO makes up 9.08% of the Consumer Staples Select Sector SPDR Fund ETF which is trading higher by about 0.1% on the day Thursday.