TCPC Trading Below Director's Recent Buy Price

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 October 15, TCP Capital Corp.'s Director, Peter E. Schwab, invested $77,050.00 into 5,000 shares of TCPC, for a cost per share of $15.41. 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 Tuesday, bargain hunters could buy shares of TCP Capital Corp. ( TCPC) and achieve a cost basis even cheaper than Schwab, with shares changing hands as low as $15.39 per share. It should be noted that Schwab has collected $0.41/share in dividends since the time of their purchase, so they are currently up 2.5% on their purchase from a total return basis. TCP Capital Corp. shares are currently trading off about 1.5% on the day. The chart below shows the one year performance of TCPC shares, versus its 200 day moving average:

TCP Capital Corp. Chart

Looking at the chart above, TCPC's low point in its 52 week range is $15.03 per share, with $18.55 as the 52 week high point — that compares with a last trade of $15.47. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
10/10/2014 Mark Holdsworth Authorized Person 5,000 $15.81 $79,052.50
10/15/2014 Eric John Draut Director 1,000 $15.21 $15,210.00
10/15/2014 Elizabeth Greenwood CCO and Secretary 1,000 $15.21 $15,205.00
10/15/2014 Rajneesh Vig President and COO 3,000 $15.19 $45,556.08
10/15/2014 Peter E. Schwab Director 5,000 $15.41 $77,050.00

The current annualized dividend paid by TCP Capital Corp. is $1.44/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 12/04/2014. Below is a long-term dividend history chart for TCPC, which can be of good help in judging whether the most recent dividend with approx. 9.2% annualized yield is likely to continue.

TCPC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, TCPC makes up 4.21% of the BDC Income ETF ( BIZD) which is trading lower by about 1.1% on the day Tuesday.

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