In trading on Thursday, shares of Dynegy Inc (DYN) touched a new 52-week low of $8.99/share. That's a $25.70 share price drop, or -74.08% decline from the 52-week high of $34.69 set back on 04/24/2015. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for DYN that means the stock would have to gain 285.87% to get back to the 52-week high. For a move like that, Dynegy Inc would need fundamental strength at the business level.

Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as DYN shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, DYN has seen 11 different instances of insiders buying over the past six months.

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Purchased Insider Title Shares Price/Share Value
08/13/2015 Catherine B. Callaway Exec VP and General Counsel 2,500 $24.38 $60,950.00
08/13/2015 Clint Freeland Exec. VP and CFO 2,000 $24.50 $49,000.00
08/14/2015 Mario E. Alonso EVP-Strategic Planning & Dev 2,000 $25.00 $50,000.00
08/17/2015 Julius Cox EVP - CAO 980 $25.42 $24,911.00
08/18/2015 Carolyn Jeanne Burke EVP 3,000 $25.66 $76,980.00
08/18/2015 Henry D. Jones EVP & Chief Commercial Officer 3,000 $25.90 $77,700.00
08/21/2015 Martin W. Daley Executive Vice President 2,000 $24.71 $49,420.00
08/20/2015 Hilary E. Ackermann Director 1,000 $26.17 $26,170.00
08/20/2015 Sheree M. Petrone Executive Vice President 3,000 $25.78 $77,340.00
08/21/2015 Jeffrey Scott Stein Director 1,000 $24.71 $24,710.00
11/10/2015 Daniel P. Thompson EVP 1,000 $17.55 $17,550.00
11/13/2015 Robert C. Flexon President and CEO 10,000 $16.70 $167,000.00
12/08/2015 Patrick Wood III Director 6,400 $11.61 $74,304.00

In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where DYN has traded over the past year, with the 50-day and 200-day moving averages included.

Dynegy Inc  Moving Averages Chart

Time will tell whether the insider purchases foretell a future rebound for DYN shares, which are presently showing a last trade of $9.05/share, slightly above the new 52-week low.