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One more stock that has seen some notable insider buying recently is
Fifth Street Finance(FSC - Get Report), a finance firm that lends to and invests in small and mid-sized companies in connection with investments by private equity sponsors. This stock hasn't done much in 2011, with shares down by around 3.7%.
This company has a market cap of $772.67 million and an enterprise value of $1.01 billion. The stock trades at a trailing price-to-earnings of 17 and a forward price-to-earnings of 9.2. This isn't a cash-rich company, with $38.76 million of cash on its balance sheet and $272.30 million of total debt. That said, Fifth Street, one of the
highest-yielding financial services stocks, pays out $1.28 a share in dividends, which equates to 10.9% yield.
Fifth Street recently completed a public offering of common stock, which raised $65.1 million in gross proceeds. The company closed its public offering of 5.6 million shares of common stock at a price of $11.72 per share. The CEO just
bought 30,000 shares, or $347,500 worth of stock, at $11.58 per share. Earlier in June, the CEO also bought 10,000 shares, or $116,740 worth of stock, at $11.67 per share. This same CEO also made a number of purchases in May that totaled over $600,000 worth of stock.
From a technical standpoint, this stock has sold off sharply during the past few months from its high of $13.56 a share to its recent low of $11.42 a share. During that selloff, the stock fell below both its 50-day and 200-day moving averages. That said, the stock could be finding some buying support here at around $11.42 a share. It's also worth noting that the last time this stock hit $11.36 in early 2011, it ran up to $13.50.
One could be a buyer here on any weakness and simply stop out below $11.36 a share. If this stock falls below $11.36, then it could easily fall down to $10.50 or even $9 a share pretty quickly
To see more stocks with notable insider buying, including
Smithfield Foods (SFD),
Titanium Metals (TIE) and
Triumph Group (TGI), check out the
Stocks With Big Insider Buying portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.