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 October 28, Buckeye Technologies Inc.'s Sr VP Specialty Fibers, Douglas L Dowdell, invested $53,006.03 into 1,771 shares of BKI, for a cost per share of $29.93. 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 Monday, bargain hunters could buy shares of Buckeye Technologies Inc. (NYSE:BKI) and achieve a cost basis 1.7% cheaper than Dowdell, with shares changing hands as low as $29.42 per share. It should be noted that Dowdell has collected $0.06/share in dividends since the time of their purchase, so they are currently down 1.5% on their purchase from a total return basis. Buckeye Technologies Inc. shares are currently trading down about 3.4% on the day. The chart below shows the one year performance of BKI shares, versus its 200 day moving average:
Looking at the chart above, BKI's low point in its 52 week range is $17.85 per share, with $32.18 as the 52 week high point — that compares with a last trade of $29.39. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
Douglas L Dowdell
Sr VP Specialty Fibers
The current annualized dividend paid by Buckeye Technologies Inc. is $0.24/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/10/2011. Below is a long-term dividend history chart for BKI, which can be of good help in judging whether the most recent dividend with approx. 0.8% annualized yield is likely to continue.
BKI operates in the Paper & Forest Products sector, among companies like Clearwater Paper Corp (NYSE:CLW) which is down about 1.6% today, and KapStone Paper & Packaging Corp (NYSE:KS) trading lower by about 6.3%. Below is a three month price history chart comparing the stock performance of BKI, versus CLW and KS.
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