Top Buys by Directors: Morian's $192.1K Bet on NRP

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 $192.1K by S. Reed Morian, Director at Natural Resources Partners L.P. (NRP).

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Morian bets big on NRP:
Purchased Insider Title Shares Price/Share Value
12/11/2014 S. Reed Morian Director 20,000 $9.60 $192,093.98

Morian's average cost works out to $9.60/share. In trading on Wednesday, bargain hunters could buy shares of Natural Resources Partners L.P. ( NRP) and achieve a cost basis lower than Morian, with shares changing hands as low as $3.93 per share. It should be noted that Morian has collected $0.44/share in dividends since the time of their purchase, so they are currently down 54.5% on their purchase from a total return basis. Shares of Natural Resources Partners L.P. were changing hands at $4.08 at last check, trading up about 3.3% on Wednesday. The chart below shows the one year performance of NRP shares, versus its 200 day moving average:

Natural Resources Partners L.P. Chart

Looking at the chart above, NRP's low point in its 52 week range is $3.65 per share, with $16.91 as the 52 week high point — that compares with a last trade of $4.08.

The current annualized dividend paid by Natural Resources Partners L.P. is $0.36/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 05/01/2015. Below is a long-term dividend history chart for NRP, which can be of good help in judging whether the most recent dividend with approx. 9.1% annualized yield is likely to continue.

NRP+Dividend+History+Chart

According to the ETF Finder at ETF Channel, NRP makes up 1.48% of the Coal ETF ( KOL) which is trading higher by about 0.3% on the day Wednesday.

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