Top Buys by Directors: James's $347.2K Bet on WMC

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 $347.2K invested across 3 purchases by Gavin L. James, President, CEO at Western Asset Mortgage Capital Corp (WMC).

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James bets big on WMC:
Purchased Insider Title Shares Price/Share Value
08/15/2014 Gavin L. James President, CEO 16,060 $14.69 $235,921.40
09/11/2014 Gavin L. James President, CEO 6,570 $15.20 $99,864.00
11/21/2014 Gavin L. James President, CEO 750 $15.21 $11,407.50

James's average cost works out to $14.85/share. Shares of Western Asset Mortgage Capital Corp were changing hands at $15.19 at last check, trading off about 2.9% on Friday. The chart below shows the one year performance of WMC shares, versus its 200 day moving average:

Western Asset Mortgage Capital Corp Chart

Looking at the chart above, WMC's low point in its 52 week range is $13.50 per share, with $17.48 as the 52 week high point — that compares with a last trade of $15.19.

The current annualized dividend paid by Western Asset Mortgage Capital Corp is $2.80/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 10/01/2014. Below is a long-term dividend history chart for WMC, which can be of good help in judging whether the most recent dividend with approx. 17.9% annualized yield is likely to continue.

WMC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, WMC makes up 1.11% of the iShares Mortgage Real Estate Capped ETF ( REM) which is trading lower by about 1.1% on the day Friday.

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