Snatch This Bargain Even Cheaper Than Director Bailo Did

By Dividend Channel Staff, Monday, June 21, 11:20 AM ET

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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 June 16, Advance Auto Parts Inc's Director, Carla Jean Bailo, invested $79,118.92 into 400 shares of AAP, for a cost per share of $197.80. 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.

In trading on Monday, bargain hunters could buy shares of Advance Auto Parts Inc (NYSE:AAP) and achieve a cost basis 1.5% cheaper than Bailo, with shares changing hands as low as $194.76 per share. It should be noted that Bailo has collected $1.00/share in dividends since the time of their purchase, so they are currently down 1.0% on their purchase from a total return basis. Advance Auto Parts Inc shares are currently trading up about 2.6% on the day. The chart below shows the one year performance of AAP shares, versus its 200 day moving average:

Advance Auto Parts Inc Chart

Looking at the chart above, AAP's low point in its 52 week range is $131.90 per share, with $210.18 as the 52 week high point — that compares with a last trade of $198.12. By comparison, below is a table showing the prices at which AAP insider buying was recorded over the last six months:

Purchased	Insider	Title	Shares	Price/Share	Value
06/16/2021	Carla Jean Bailo	Director	400	$197.80	$79,118.92

The current annualized dividend paid by Advance Auto Parts Inc is $4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 06/17/2021. Below is a long-term dividend history chart for AAP, which can be of good help in judging whether the most recent dividend with approx. 2.1% annualized yield is likely to continue.

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Snatch This Bargain Even Cheaper Than Director Bailo Did

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