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.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: 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:
|05/08/2014||Robson Kuster||Chief Operating Officer||2,624||$16.98||$44,555.52|
|05/19/2014||Richard Lee Phegley Jr.||Chief Financial Officer||710||$17.04||$12,101.24|
|05/22/2014||Robson Kuster||Chief Operating Officer||1,605||$17.27||$27,716.74|
|05/29/2014||Robson Kuster||Chief Operating Officer||4,485||$17.70||$79,384.50|
|05/08/2014||Richard J. King||President & CEO||5,500||$16.99||$93,445.00|
|06/04/2014||Richard J. King||President & CEO||2,657||$17.54||$46,603.78|
According to the ETF Finder at ETF Channel, IVR makes up 3.76% of the Mortgage REIT Income ETF ( MORT) which is trading higher by about 0.2% on the day Thursday.