Top Buys by Directors: Lambiase's $320K Bet on CIM

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 $320K by Matthew Lambiase, CEO at Chimera Investment Corporation (CIM).

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

Lambiase bets big on CIM:
Purchased Insider Title Shares Price/Share Value
08/13/2014 Matthew Lambiase CEO, President and Director 100,000 $3.20 $320,000.00

Lambiase's average cost works out to $3.20/share. Shares of Chimera Investment Corporation were changing hands at $3.25 at last check, trading up about 0.1% on Monday. The chart below shows the one year performance of CIM shares, versus its 200 day moving average:

Chimera Investment Corporation Chart

Looking at the chart above, CIM's low point in its 52 week range is $2.89 per share, with $3.34 as the 52 week high point — that compares with a last trade of $3.25.

The current annualized dividend paid by Chimera Investment Corporation is $0.36/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 06/26/2014. Below is a long-term dividend history chart for CIM, which can be of good help in judging whether the most recent dividend with approx. 11.1% annualized yield is likely to continue.

CIM+Dividend+History+Chart

According to the ETF Finder at ETF Channel, CIM makes up 4.82% of the Mortgage REIT Income ETF ( MORT) which is trading up by about 0.2% on the day Monday.

More from Stocks

3 New Investing Myths That Must Be Busted

3 New Investing Myths That Must Be Busted

Why a Global Stock Market Crash Is Coming

Why a Global Stock Market Crash Is Coming

Dump All Your Disney Stock: Doug Kass Insider

Dump All Your Disney Stock: Doug Kass Insider

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout