Tuesday, January 10, 2012

Get An Even Better Deal On AFSI Than Director Decarlo Did

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 December 22, AmTrust Financial Services Inc’s Director, Donald T. Decarlo, invested $23,800.00 into 1,000 shares of AFSI, for a cost per share of $23.80. 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 Wednesday, bargain hunters could buy shares of AmTrust Financial Services Inc (NASD: AFSI) and achieve a cost basis even cheaper than Decarlo, with shares changing hands as low as $23.79 per share. AmTrust Financial Services Inc shares are currently trading up about 0.1% on the day. The chart below shows the one year performance of AFSI shares, versus its 200 day moving average:
AmTrust Financial Services Inc Chart
Looking at the chart above, AFSI’s low point in its 52 week range is $17.33 per share, with $27.63 as the 52 week high point �� that compares with a last trade of $23.95. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
12/22/2011Donald T. DecarloDirector1,000$23.80$23,800.00
The current annualized dividend paid by AmTrust Financial Services Inc is $0.36/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 12/30/2011. Below is a long-term dividend history chart for AFSI, which can be of good help in judging whether the most recent dividend with approx. 1.5% annualized yield is likely to continue.
AFSI operates in the Insurance Brokers sector, among companies like Hanover Insurance Group Inc (NYSE: THG) which is off about 0.2% today, and Harleysville Group, Inc. (NASD: HGIC) trading lower by about 0.4%. Below is a three month price history chart comparing the stock performance of AFSI, versus THG and HGIC.
AFSI,THG,HGIC Relative Performance Chart

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