Top Buys by Top Brass: President Donlon's $1.6M Bet on NYMT

A company's own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. 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 — 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 the ''top brass'' over the trailing six month period, one of which was a total of $1.6M invested across 3 purchases by Kevin M. Donlon, President at New York Mortgage Trust Inc (NYMT).

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Donlon bets big on NYMT:
Purchased Insider Title Shares Price/Share Value
05/23/2016 Kevin M. Donlon President 1,600 $5.60 $8,960.00
05/31/2016 Kevin M. Donlon President 203,396 $5.92 $1,203,534.81
06/09/2016 Kevin M. Donlon President 58,004 $6.30 $365,692.02

Donlon's average cost works out to $6.00/share. Shares of New York Mortgage Trust Inc were changing hands at $6.50 at last check, trading up about 0.4% on Friday. The chart below shows the one year performance of NYMT shares, versus its 200 day moving average:

New York Mortgage Trust Inc Chart

Looking at the chart above, NYMT's low point in its 52 week range is $3.82 per share, with $6.68 as the 52 week high point — that compares with a last trade of $6.50.

The current annualized dividend paid by New York Mortgage Trust Inc is $0.96/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 09/22/2016. Below is a long-term dividend history chart for NYMT, which can be of good help in judging whether the most recent dividend with approx. 14.8% annualized yield is likely to continue.

NYMT+Dividend+History+Chart

According to the ETF Finder at ETF Channel, NYMT makes up 2.70% of the Mortgage REIT Income ETF ( MORT) which is trading relatively unchanged on the day Friday.

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