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 August 27, Dime Community Bancshares, Inc's Director, Anthony Bergamo, invested $69,566.50 into 5,000 shares of DCOM, for a cost per share of $13.91. 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.
In trading on Thursday, bargain hunters could buy shares of Dime Community Bancshares, Inc (NASD: DCOM) and achieve a cost basis 3.3% cheaper than Bergamo, with shares changing hands as low as $13.45 per share. It should be noted that Bergamo has collected $0.14/share in dividends since the time of their purchase, so they are currently down 2.3% on their purchase from a total return basis. Dime Community Bancshares, Inc shares are currently trading up about 1.5% on the day. The chart below shows the one year performance of DCOM shares, versus its 200 day moving average:
Looking at the chart above, DCOM's low point in its 52 week range is $10.95 per share, with $15.01 as the 52 week high point — that compares with a last trade of $13.70. 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 |
|---|---|---|---|---|---|
| 08/27/2012 | Anthony Bergamo | Director | 5,000 | $13.91 | $69,566.50 |
The current annualized dividend paid by Dime Community Bancshares, Inc is $0.56/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/02/2012. Below is a long-term dividend history chart for DCOM, which can be of good help in judging whether the most recent dividend with approx. 4.2% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, DCOM makes up 1.53% of the KBW High Dividend Yield Financial Portfolio ETF (AMEX: KBWD)which is trading up by about 0.9% on the day Thursday.
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