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Land This Cheap 6.0% Yielder Even Lower Than Executive VP, Operations Difranco Did

By The Online Investor Staff, Monday, March 29, 10:02 AM ET

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 March 23, Bluerock Residential Growth REIT Inc's Executive VP, Operations, Michael Difranco, invested $5,592.50 into 500 shares of BRG, for a cost per share of $11.19. 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 Bluerock Residential Growth REIT Inc (BRG) and achieve a cost basis 5.9% cheaper than Difranco, with shares changing hands as low as $10.53 per share. It should be noted that Difranco has collected $0.16/share in dividends since the time of their purchase, so they are currently down 4.4% on their purchase from a total return basis. Bluerock Residential Growth REIT Inc shares are currently trading down about 0.3% on the day. The chart below shows the one year performance of BRG shares, versus its 200 day moving average:

Bluerock Residential Growth REIT Inc Chart

Looking at the chart above, BRG's low point in its 52 week range is $3.79 per share, with $12.83 as the 52 week high point — that compares with a last trade of $10.75. By comparison, below is a table showing the prices at which BRG insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
03/23/2021 Michael Difranco Executive VP, Operations 500 $11.19 $5,592.50

The current annualized dividend paid by Bluerock Residential Growth REIT Inc is $0.65/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/24/2021. Below is a long-term dividend history chart for BRG, which can be of good help in judging whether the most recent dividend with approx. 6.0% annualized yield is likely to continue.


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