Mark Lipson, a director at Source Capital (SOR), recently added 1,325 shares. The buy increased his holdings by nearly 49 percent, and came to a total cost of just under $54,000.
This comes after a company VP made three buys back in June, totaling just over 2,500 shares. Over the past three years, company insiders, including both executives and directors, have been modest buyers of shares, with only one insider sale in late 2019.
Overall, insiders at the asset management company own about 0.1 percent of shares.
The stock has slid about 18 percent in the past year. While revenues are up nearly 31 percent at the company, investment values are down. However, the company did earn an impressive 347 percent profit margin in the most recent year. And the stock recently traded for less than 8 times earnings.
Action to take: Investors may like shares here, as the company is a dividend growth play with a starting yield of about 5.9 percent right now. There’s room for further growth in the future, given the stock’s payout ratio under 50 percent.
For traders, no options are available right now, so an options trade on a larger name in the asset management space would be the place to go on expectations of a market rebound for a leveraged return.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.