IIn this series, we look at the most recent Dividend Channel âDividendRankâ report and then select only those companies that have been the subject of insider buying in the past six months. Executives and directors of a company tend to have a unique insider perspective on the company, and the only reason an insider would choose to take their hard-earned money and use it to buy stocks is in the open market is that he expects to make money – maybe they find the stock very undervalued, or maybe they see some exciting progress within the company, or maybe both. So when stocks come up that see insiders buying and are also top ranked, investors are advised to take note. One of these companies is Erie Indemnity Co. (Symbol: ERIE), which was purchased by director Thomas B. Hagen.
On September 22, Hagen invested $ 74,064.28 in 400 shares of ERIA, at a cost per share of $ 185.16. In Thursday’s trading, bargain hunters could buy shares of Erie Indemnity Co. (Ticker: ERIE) and achieve a base cost 4.4% cheaper than Hagen, with shares changing hands as low that $ 177.03 per share. Erie Indemnity Co. shares are currently trading at -0.25% on that day. The chart below shows the one-year performance of the ERIE share against its 200-day moving average:
Looking at the chart above, ERIA’s low point in its 52 week range is $ 168.87 per share, with $ 266.77 as a 52 week high, compared with a last trade of 177, $ 34. For comparison, here’s a table showing the prices at which insider buys were recorded in the past six months:
|Purchased||Initiated||Title||Actions||Price / share||Value|
|09/22/2021||Thomas B. Hagen||Director||400||$ 185.16||$ 74,064.28|
The DividendRank report noted that among the hedging universe, ERIE stocks displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong history of Erie Indemnity Co.’s quarterly dividends and long-term favorable multi-year growth rates in key fundamental data points.
The report said, âDividend investors who approach investing from a value perspective are generally more interested in finding the strongest, most profitable companies, which are also trading at an attractive valuation. This is what we seek to find by using our exclusive DividendRank formula, which ranks the hedging universe according to our various profitability and valuation criteria, to generate a list of the most âinterestingâ stocks, intended for investors. as a source of ideas that deserves further research. ”
The annualized dividend paid by Erie Indemnity Co. is $ 4.14 / share, currently paid in quarterly installments, and its most recent ex-dividend date was 4/10/2021. Below is a chart of the long-term dividend history for ERIE, which the report highlighted as being of key importance. Indeed, studying a company’s past dividend history can be of great help in judging whether the most recent dividend is likely to continue.
Most Dividend Listed Stocks with Insider Buys â
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