JoEllen Legg, a director at Reaves Utility Income Fund (NYSE:UTG), purchased shares of the company's stock valued at $50,009, according to a recent SEC filing. The transaction took place on March 25, 2024, with the director acquiring a total of 1,890 shares at a price of $26.46 each.
This investment move by Legg demonstrates a commitment to the fund and comes as an insightful transaction for those following insider activity. The Reaves Utility Income Fund is known for its focus on utility income, and such purchases by directors are often seen as a positive signal to investors.
The details of the transaction were made public through the SEC Form 4 filing, which was submitted on March 27, 2024. Following the purchase, Legg now directly owns 1,890 shares in the fund. The acquisition price of $26.46 per share reflects the market value on the date of the transaction.
Investors and market watchers typically pay close attention to such filings as they can provide insights into a company's internal perspectives and expectations. The actions of directors and other insiders can be indicative of their confidence in the fund's performance and potential for growth.
Reaves Utility Income Fund, trading under the ticker NYSE:UTG, has not issued any statements regarding the transaction. The purchase by Director JoEllen Legg stands as a noteworthy event for current and potential shareholders, reflecting an insider's bolstered stake in the fund's future.
InvestingPro Insights
The recent insider purchase by Director JoEllen Legg at Reaves Utility Income Fund (NYSE:UTG) aligns with the fund's notable history of providing shareholder value through dividends. According to InvestingPro Tips, UTG has maintained dividend payments for 21 consecutive years, underscoring its commitment to returning capital to investors. Additionally, the fund's stock is known to exhibit low price volatility, suggesting it could be a stable addition to an income-focused portfolio.
From a financial performance standpoint, InvestingPro Data shows that Reaves Utility Income Fund reported a robust revenue growth of 33.05% in the last twelve months as of Q4 2023. Despite not being profitable over the last twelve months, the fund's dividend yield stands at an attractive 8.63% as of the latest data, which could be particularly appealing to income investors. The fund's gross profit margin was reported to be an impressive 100% in the same period, indicating that it effectively managed its cost of sales to maintain profitability at the gross level.
For those considering an investment in Reaves Utility Income Fund, it may be worthwhile to explore additional InvestingPro Tips available on the platform. Currently, there are 6 more tips that could provide deeper insights into UTG's financial health and investment potential. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering an enhanced perspective for your investment decisions.
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