Bag This Bargain 8.3% Yield Dividend Stock Even Cheaper Than Director Weicker Jr. Did

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 August 11, Medallion Financial Corp.'s Director, Lowell P. Weicker Jr., invested $54,051.98 into 4,635 shares of TAXI, for a cost per share of $11.66. 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.

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In trading on Monday, bargain hunters could buy shares of Medallion Financial Corp. ( TAXI) and achieve a cost basis 2.1% cheaper than Weicker Jr., with shares changing hands as low as $11.42 per share. It should be noted that Weicker Jr. has collected $0.24/share in dividends since the time of their purchase, so they are currently down 0.0% on their purchase from a total return basis. Medallion Financial Corp. shares are currently trading up about 0.7% on the day. The chart below shows the one year performance of TAXI shares, versus its 200 day moving average:

Medallion Financial Corp. Chart

Looking at the chart above, TAXI's low point in its 52 week range is $11.01 per share, with $17.85 as the 52 week high point — that compares with a last trade of $11.63. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

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