The officers and directors of a company tend to have a unique insider’s view of the business, and presumably the only reason an insider would choose to take his hard-earned cash and use it to buy stock in the open market, is that he expects to make money — maybe he finds the stock very undervalued, or maybe he sees exciting progress within the company, or maybe both.
So, when stocks turn up that see insider buying and are also top-ranked, investors are wise to take notice. One such company is JPMorgan Chase & Co. (JPM), which saw buying by Director Michael A. Neal.
Back on Jan. 15, Neal invested $498,383.50 into 9,050 shares of JPM, for a cost of $55.07 per share. In trading on Tuesday, JPM shares were changing hands as low as $55.42 per share, which is 0.6% above Neal’s purchase price.
The chart below shows the one-year performance of JPM stock versus its 200-day moving average:
Looking at the chart above, JPM stock’s low point in its 52-week range is $52.97 per share, with $63.49 as the 52-week high point — that compares with a last trade of $55.61.
The DividendRank report noted that among the coverage universe, JPM shares displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong quarterly dividend history at JPMorgan and favorable long-term multi-year growth rates in key fundamental data points. The report stated,
”Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That’s what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most ‘interesting’ stocks, meant for investors as a source of ideas that merit further research.”
The annualized dividend paid by JPMorgan Chase is $1.60 per share, currently paid in quarterly installments, and JPM stock’s most recent dividend ex-date was on Jan. 2. Below is a long-term dividend history chart for JPM, which the report stressed as being of key importance. Indeed, studying a company’s past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
START SLIDESHOW: The Top DividendRank‘ed Stocks With Insider Buying.
