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 May 19, ConocoPhillips‘ (COP) Director Charles E. Bunch invested $65,189.90 into 1,000 shares of COP for a cost per share of $65.19. Bargain hunters tend to pay particular attention to insider buys like this one because, presumably, the only reason insiders would use their hard-earned cash to buy stocks of their companies in the open market is that they expect to make money.
In trading on Monday, bargain hunters could buy shares of ConocoPhillips and achieve a cost basis 2.6% cheaper than Bunch, with shares changing hands as low as $63.50 per share. Yesterday, ConocoPhillips stock was trading down about 0.2% on the day.
It should be noted that Bunch has collected 73 cents per share in dividends since the time of his purchase. So, he is currently down 1.5% on his purchase from a total return basis.
The chart below shows the one-year performance of COP stock versus its 200 day moving average:
Looking at the chart above, COP stock’s low point in its 52-week range is $60.57 per share, with $87.09 as the 52-week high point — that compares with a last trade of $63.53. By comparison, below is a table showing the prices at which COP insider buying was recorded over the last six months:
|05/19/2015||Charles E. Bunch||Director||1,000||$65.19||$65,189.90|
The current annualized dividend paid by ConocoPhillips is $2.92 per share, which is currently paid in quarterly installments. COP stock’s most recent dividend ex-date was on May 20.
Below is a long-term dividend history chart for COP, which can be good help in judging whether the most recent dividend with approximately 4.6% annualized yield is likely to continue.
COP makes up 13.1% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).