EV Energy Partners: A 14.4% Better Bargain Than When Lindahl III Bought

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 January 16, EV Energy Partners LP's Director, George Lindahl III, invested $74,072.00 into 5,000 shares of EVEP, for a cost per share of $14.81. 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 EV Energy Partners LP ( EVEP) and achieve a cost basis 14.4% cheaper than Lindahl III, with shares changing hands as low as $12.68 per share. It should be noted that Lindahl III has collected $1.00/share in dividends since the time of their purchase, so they are currently down 7.7% on their purchase from a total return basis. EV Energy Partners LP shares are currently trading down about 0.4% on the day. The chart below shows the one year performance of EVEP shares, versus its 200 day moving average:

EV Energy Partners LP Chart

Looking at the chart above, EVEP's low point in its 52 week range is $11.95 per share, with $41.97 as the 52 week high point — that compares with a last trade of $12.76. By comparison, below is a table showing the prices at which EVEP insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
01/16/2015 George Lindahl III Director 5,000 $14.81 $74,072.00
04/09/2015 John B. Walker See Remarks 300,000 $14.25 $4,275,000.00

The current annualized dividend paid by EV Energy Partners LP is $2.00/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 05/07/2015. Below is a long-term dividend history chart for EVEP, which can be of good help in judging whether the most recent dividend with approx. 15.6% annualized yield is likely to continue.

EVEP+Dividend+History+Chart

According to the ETF Finder at ETF Channel, EVEP makes up 2.64% of the Junior MLP ETF ( MLPJ) which is trading lower by about 0.1% on the day Tuesday.

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