Top Buys by Directors: Gladstone's $1.3M Bet on GAIN

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 $1.3M by David Gladstone, Chief Executive Officer at Gladstone Investment Corp (GAIN).

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Gladstone bets big on GAIN:
Purchased Insider Title Shares Price/Share Value
06/15/2015 David Gladstone Chief Executive Officer 158,500 $7.89 $1,250,517.93

Gladstone's average cost works out to $7.89/share. In trading on Wednesday, bargain hunters could buy shares of Gladstone Investment Corp ( GAIN) and achieve a cost basis lower than Gladstone, with shares changing hands as low as $7.78 per share. Shares of Gladstone Investment Corp were changing hands at $7.88 at last check, trading up about 0.7% on Wednesday. The chart below shows the one year performance of GAIN shares, versus its 200 day moving average:

Gladstone Investment Corp Chart

Looking at the chart above, GAIN's low point in its 52 week range is $6.72 per share, with $8.04 as the 52 week high point — that compares with a last trade of $7.88.

The current annualized dividend paid by Gladstone Investment Corp is $0.75/share, currently paid in monthly installments, and its most recent dividend ex-date was on 06/17/2015. Below is a long-term dividend history chart for GAIN, which can be of good help in judging whether the most recent dividend with approx. 9.5% annualized yield is likely to continue.

GAIN+Dividend+History+Chart

GAIN makes up 1.02% of the BDC Income ETF ( BIZD)

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