Top Buys by Directors: Perdue's $128.5K Bet on GDP

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 $128.5K by Michael J. Perdue, Director at Goodrich Petroleum Corp. (GDP).

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Perdue bets big on GDP:
Purchased Insider Title Shares Price/Share Value
11/06/2014 Michael J. Perdue Director 17,075 $7.52 $128,456.93

Perdue's average cost works out to $7.52/share. Shares of Goodrich Petroleum Corp. were changing hands at $8.74 at last check, trading up about 15.7% on Friday. The chart below shows the one year performance of GDP shares, versus its 200 day moving average:

Goodrich Petroleum Corp.  Chart

Looking at the chart above, GDP's low point in its 52 week range is $7.01 per share, with $30.52 as the 52 week high point — that compares with a last trade of $8.74.

According to the ETF Finder at ETF Channel, GDP makes up 2.00% of the First Trust ISE-Revere Natural Gas Index Fund ETF ( FCG) which is trading higher by about 2.2% on the day Friday.

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