Top Buys by Directors: Hamwee's $391.7K Bet on NMFC

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 $391.7K invested across 2 purchases by Robert Hamwee, CEO at New Mountain Finance Corp (NMFC).

START SLIDESHOW:
Click here to find out which other top insider buys by company directors you need to know about »

Hamwee bets big on NMFC:
Purchased Insider Title Shares Price/Share Value
03/07/2014 Robert Hamwee CEO, President and Director 12,000 $14.75 $176,984.40
04/28/2014 Robert Hamwee CEO, President and Director 15,000 $14.31 $214,692.00

Hamwee's average cost works out to $14.51/share. Shares of New Mountain Finance Corp were changing hands at $15.02 at last check, trading down about 0.3% on Monday. The chart below shows the one year performance of NMFC shares, versus its 200 day moving average:

New Mountain Finance Corp Chart

Looking at the chart above, NMFC's low point in its 52 week range is $13.86 per share, with $15.31 as the 52 week high point — that compares with a last trade of $15.02.

The current annualized dividend paid by New Mountain Finance Corp is $1.36/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 09/12/2014. Below is a long-term dividend history chart for NMFC, which can be of good help in judging whether the most recent dividend with approx. 9.0% annualized yield is likely to continue.

NMFC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, NMFC makes up 3.83% of the BDC Income ETF ( BIZD) which is trading up by about 0.2% on the day Monday.

More from Stocks

Abercrombie & Fitch CEO: We Aren't the Same Abercrombie You Once Knew

Abercrombie & Fitch CEO: We Aren't the Same Abercrombie You Once Knew

3 Things We Just Learned About Chip Stocks -- and It's Not All Bad News

3 Things We Just Learned About Chip Stocks -- and It's Not All Bad News

Chipotle's New CEO Has Set its Path for Redemption

Chipotle's New CEO Has Set its Path for Redemption

Will China Save Tesla?

Will China Save Tesla?

Facebook First-Quarter Earnings Live Blog

Facebook First-Quarter Earnings Live Blog