Bag This Cheap 11.6% Yielder Even Lower Than CEO King 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 June 4, Invesco Mortgage Capital Inc.'s CEO, Richard J. King, invested $46,603.78 into 2,657 shares of IVR, for a cost per share of $17.54. 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 Thursday, bargain hunters could buy shares of Invesco Mortgage Capital Inc. ( IVR) and achieve a cost basis 1.9% cheaper than King, with shares changing hands as low as $17.20 per share. It should be noted that King has collected $0.50/share in dividends since the time of their purchase, so they are currently up 0.9% on their purchase from a total return basis. Invesco Mortgage Capital Inc. shares are currently trading up about 0.7% on the day. The chart below shows the one year performance of IVR shares, versus its 200 day moving average:

Invesco Mortgage Capital Inc. Chart

Looking at the chart above, IVR's low point in its 52 week range is $14.41 per share, with $18.00 as the 52 week high point — that compares with a last trade of $17.31. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

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