Get An Even Better Deal On FSC Than Director Berman 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 December 11, Fifth Street Finance Corporation's Director, Bernard D. Berman, invested $16,375.84 into 2,000 shares of FSC, for a cost per share of $8.19. 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 Fifth Street Finance Corporation ( FSC) and achieve a cost basis 2.1% cheaper than Berman, with shares changing hands as low as $8.02 per share. Fifth Street Finance Corporation shares are currently trading up about 1.9% on the day. The chart below shows the one year performance of FSC shares, versus its 200 day moving average:

Fifth Street Finance Corporation Chart

Looking at the chart above, FSC's low point in its 52 week range is $7.80 per share, with $10.20 as the 52 week high point — that compares with a last trade of $8.06. 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
08/20/2014 Ivelin M. Dimitrov Chief Investment Officer 1,000 $9.74 $9,739.90
12/03/2014 Richard A. Petrocelli Chief Financial Officer 2,000 $8.52 $17,039.80
12/11/2014 Bernard D. Berman Director 2,000 $8.19 $16,375.84

The current annualized dividend paid by Fifth Street Finance Corporation is $1.1004/share, currently paid in monthly installments, and its most recent dividend has an upcoming ex-date of 01/13/2015. Below is a long-term dividend history chart for FSC, which can be of good help in judging whether the most recent dividend with approx. 13.9% annualized yield is likely to continue.

FSC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, FSC makes up 4.77% of the BDC Income ETF ( BIZD) which is trading higher by about 2.7% on the day Thursday.

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