The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $15.7M invested across 2 purchases by John T. Raymond, Director at Plains All American Pipeline, L.P. (NYSE: PAA).
Click here to find out which other top insider buys by company directors you need to know about »
Raymond bets big on PAA:
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 08/18/2011 | John T. Raymond | Director | 200,354 | $59.30 | $11,880,992.20 |
| 08/23/2011 | John T. Raymond | Director | 65,108 | $59.30 | $3,860,904.40 |
Raymond's average cost works out to $59.30/share. Shares of Plains All American Pipeline, L.P. were changing hands at $67.33 at last check, trading up about 0.2% on Wednesday. The chart below shows the one year performance of PAA shares, versus its 200 day moving average:
Looking at the chart above, PAA's low point in its 52 week range is $54.90 per share, with $67.74 as the 52 week high point — that compares with a last trade of $67.33.
The current annualized dividend paid by Plains All American Pipeline, L.P. is $3.98/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/02/2011. Below is a long-term dividend history chart for PAA, which can be of good help in judging whether the most recent dividend with approx. 5.9% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, PAA makes up 1.66% of the Guggenheim Mid-Cap Core ETF (AMEX: CZA) which is trading lower by about 0.6% on the day Wednesday.
See what other ETFs contain PAA »
See what other stocks are held by CZA »
PAA operates in the Oil & Gas Equipment & Services sector, among companies like Crestwood Midstream Partners LP (NYSE: CMLP) which is down about 0.1% today, and SemGroup Corp (NYSE: SEMG) trading higher by about 1.3%. Below is a three month price history chart comparing the stock performance of PAA, versus CMLP and SEMG.
