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.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: 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:
|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|
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.