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 9, BGC Partners Class A's Director, Albert M Weis, invested $30,372.56 into 4,588 shares of BGCP, for a cost per share of $6.62. 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 Friday, bargain hunters could buy shares of BGC Partners Class A (NASD: BGCP) and achieve a cost basis 7.6% cheaper than Weis, with shares changing hands as low as $6.12 per share. BGC Partners Class A shares are currently trading off about 1.5% on the day. The chart below shows the one year performance of BGCP shares, versus its 200 day moving average:
Looking at the chart above, BGCP's low point in its 52 week range is $5.62 per share, with $10.07 as the 52 week high point — that compares with a last trade of $6.12. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
|11/07/2011||Albert M Weis||Director||5,412||$6.56||$35,498.60|
|11/09/2011||Albert M Weis||Director||4,588||$6.62||$30,372.56|
The current annualized dividend paid by BGC Partners Class A is $0.68/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/09/2011. Below is a long-term dividend history chart for BGCP, which can be of good help in judging whether the most recent dividend with approx. 10.9% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, BGCP makes up 2.54% of the iShares Dow Jones U.S. Broker-Dealers Index Fund ETF (AMEX: IAI) which is trading higher by about 0.8% on the day Friday.