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Bag This Bargain Even Cheaper Than Director Schmitt Did

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This article is more than 9 years old.

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 May 15, Kcg Holdings Incorporated's Director, Daniel F. Schmitt, invested $56,250.00 into 5,000 shares of KCG, for a cost per share of $11.25. 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 Kcg Holdings Incorporated (NYSE: KCG) and achieve a cost basis 5.3% cheaper than Schmitt, with shares changing hands as low as $10.65 per share. Kcg Holdings Incorporated shares are currently trading down about 0.8% on the day. The chart below shows the one year performance of KCG shares, versus its 200 day moving average:

Looking at the chart above, KCG's low point in its 52 week range is $9.48 per share, with $12.61 as the 52 week high point — that compares with a last trade of $10.77. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
05/15/2014 Daniel F. Schmitt Director 5,000 $11.25 $56,250.00

According to the ETF Finder at ETFChannel.com, KCG makes up 2.53% of the iShares U.S. Broker-Dealers ETF (AMEX: IAI) which is trading lower by about 0.5% on the day Friday.


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