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 May 25, Gabelli Dividend & Income Trust's Director, Kuni Nakamura, invested $24,997.09 into 1,110 shares of GDV, for a cost per share of $22.52. 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 Wednesday, bargain hunters could buy shares of Gabelli Dividend & Income Trust (NYSE:GDV) and achieve a cost basis 1.2% cheaper than Nakamura, with shares changing hands as low as $22.26 per share. Gabelli Dividend & Income Trust shares are currently trading up about 0.8% on the day. The chart below shows the one year performance of GDV shares, versus its 200 day moving average:
Looking at the chart above, GDV's low point in its 52 week range is $21.10 per share, with $24.973 as the 52 week high point — that compares with a last trade of $22.41. By comparison, below is a table showing the prices at which GDV insider buying was recorded over the last six months:
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