Grab This Bargain Even Cheaper Than Chief Accounting Officer Patel DidBy The Online Investor Staff, Thursday, June 13, 1:27 PM ET
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 March 26, Methode Electronics Inc's Chief Accounting Officer, Amit N. Patel, invested $28,117.53 into 1,021 shares of MEI, for a cost per share of $27.54. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Thursday, bargain hunters could buy shares of Methode Electronics Inc (NYSE:MEI) and achieve a cost basis 4.4% cheaper than Patel, with shares changing hands as low as $26.34 per share. It should be noted that Patel has collected $0.11/share in dividends since the time of their purchase, so they are currently down 4.0% on their purchase from a total return basis. Methode Electronics Inc shares are currently trading up about 1.7% on the day. The chart below shows the one year performance of MEI shares, versus its 200 day moving average:
Looking at the chart above, MEI's low point in its 52 week range is $20.991 per share, with $45.45 as the 52 week high point — that compares with a last trade of $26.83. By comparison, below is a table showing the prices at which MEI insider buying was recorded over the last six months:
The current annualized dividend paid by Methode Electronics Inc is $0.44/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 04/11/2019. Below is a long-term dividend history chart for MEI, which can be of good help in judging whether the most recent dividend with approx. 1.7% annualized yield is likely to continue.
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