Snatch This Cheap Energy Stock With 8.1% Yield Even Lower Than Director Foster Did

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 September 8, Western Refining Logistics LP's Director, Paul L. Foster, invested $5,999,995.44 into 268,817 shares of WNRL, for a cost per share of $22.32. 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 Friday, bargain hunters could buy shares of Western Refining Logistics LP ( WNRL) and achieve a cost basis 7.3% cheaper than Foster, with shares changing hands as low as $20.70 per share. It should be noted that Foster has collected $0.42/share in dividends since the time of their purchase, so they are currently down 5.4% on their purchase from a total return basis. Western Refining Logistics LP shares are currently trading trading flat on the day. The chart below shows the one year performance of WNRL shares, versus its 200 day moving average:

Western Refining Logistics LP Chart

Looking at the chart above, WNRL's low point in its 52 week range is $17.35 per share, with $26.58 as the 52 week high point — that compares with a last trade of $20.65. By comparison, below is a table showing the prices at which WNRL insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
09/08/2016 Paul L. Foster Director 268,817 $22.32 $5,999,995.44
09/08/2016 Jeff A. Stevens President and CEO 134,408 $22.32 $2,999,986.56
09/08/2016 Scott D. Weaver Director 44,802 $22.32 $999,980.64
09/08/2016 David D. Kinder Director 7,500 $22.32 $167,400.00
09/08/2016 Andrew L. Atterbury Director 5,000 $22.32 $111,600.00
09/08/2016 Michael C. Linn Director 11,200 $22.32 $249,984.00

The current annualized dividend paid by Western Refining Logistics LP is $1.69/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/03/2016. Below is a long-term dividend history chart for WNRL, which can be of good help in judging whether the most recent dividend with approx. 8.1% annualized yield is likely to continue.

WNRL+Dividend+History+Chart

WNRL makes up 3.40% of the Zacks MLP High Income Index Shares ETF ( ZMLP)

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