Top Buys by Directors: Allen Jr.'s $107.1K Bet on DMLP

The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $107.1K invested across 3 purchases by H. C. Allen Jr., Chief Financial Officer at Dorchester Minerals LP (DMLP).

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Allen Jr. bets big on DMLP:
Purchased Insider Title Shares Price/Share Value
02/05/2014 H. C. Allen Jr. Chief Financial Officer 2,000 $24.31 $48,624.95
05/08/2014 H. C. Allen Jr. Chief Financial Officer 1,571 $27.58 $43,326.50
07/03/2014 H. C. Allen Jr. Chief Financial Officer 500 $30.20 $15,100.00

Allen Jr.'s average cost works out to $26.30/share. Shares of Dorchester Minerals LP were changing hands at $30.33 at last check, trading up about 0.1% on Monday. The chart below shows the one year performance of DMLP shares, versus its 200 day moving average:

Dorchester Minerals LP Chart

Looking at the chart above, DMLP's low point in its 52 week range is $23.56 per share, with $30.74 as the 52 week high point — that compares with a last trade of $30.33.

The current annualized dividend paid by Dorchester Minerals LP is $1.984688/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 04/16/2014. Below is a long-term dividend history chart for DMLP, which can be of good help in judging whether the most recent dividend with approx. 6.5% annualized yield is likely to continue.

DMLP+Dividend+History+Chart

According to the ETF Finder at ETF Channel, DMLP makes up 2.56% of the Junior MLP ETF ( MLPJ) which is trading lower by about 0.1% on the day Monday.

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