John Walker, EV Energy: Earlier this week, two insiders at EV Energy Partners, L.P. (NASDAQ:EVEP) filed Statements of Changes in Beneficial Ownership at the U.S. Securities and Exchange Commission. Last Friday, Oct. 18th, B John Walker, Chairman of the Board, purchased 135,000 company shares at a price of $36.86 each. After a transaction that totaled $4,976,100, Walker holds 1,743,498 shares indirectly*and 203,542 shares, directly. His total holdings are valued at $73.5 million.
Last Friday, as well, A Mark Houser, President and CEO, acquired 15,000 shares at the same price as Walker. After the reported transaction, Houser owns (between directly and indirectly owned stock) $29.6 million in shares.
I should highlight that both purchases occurred within the context of a public offering of 5,000,000 common units at $36.86 each. The company intends to use the proceeds from the offering, closed today, to repay borrowings outstanding under its senior secured credit facility.
Trading at $37.79, the stock price is quite close to its 52-week low. While some analysis firms like Raymond James cut its target price from $50 to $47, Walker and Houser seem to be betting strong on EV Energy Partners.
Although the company’s outlook is a matter of disagreement amongst analysts and investors, there is one thing that makes this stock particularly attractive: its dividends. Yielding about 8.2% of its current stock price in the form of dividends, this is a great company to add to your income portfolio.
* 1,733,098 shares are held by John B. and Lisa A. Walker, L.P., of which Mr. Walker is a general partner along with his wife. Mr. Walker disclaims beneficial ownership of the units not owned by him directly. An extra 10,400 shares are held by his spouse.
Disclosure: Javier Hasse holds no position in any stocks mentioned