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Avon Products: A 17.3% Better Bargain Than When Hailey Bought

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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 November 25, Avon Products, Inc.'s Director, V. Ann Hailey, invested $19,594.00 into 2,000 shares of AVP, for a cost per share of $9.80. 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 Thursday, bargain hunters could buy shares of Avon Products, Inc. (NYSE: AVP) and achieve a cost basis 17.3% cheaper than Hailey, with shares changing hands as low as $8.10 per share. Avon Products, Inc. shares are currently trading up about 2.6% on the day. The chart below shows the one year performance of AVP shares, versus its 200 day moving average:

Looking at the chart above, AVP's low point in its 52 week range is $7.25 per share, with $15.80 as the 52 week high point — that compares with a last trade of $8.80. 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
11/25/2014 V. Ann Hailey Director 2,000 $9.80 $19,594.00

According to the ETF Finder at ETFChannel.com, AVP makes up 2.22% of the Guggenheim S&P 500 Equal Weight Consumer Staples ETF (AMEX: RHS) which is trading up by about 0.3% on the day Thursday.


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