In a recent transaction, James A. Bowen, a director and investment advisor at First Trust Advisors LP, expanded his investment in the First Trust High Yield Opportunities 2027 Term Fund (NYSE:FTHY) with the purchase of additional shares. Bowen acquired 20,000 shares at a price of $14.0738 each, totaling approximately $281,476.
The transaction, which took place on April 12, 2024, was disclosed in a filing with the Securities and Exchange Commission. Following this purchase, Bowen's total holdings in the fund increased to 106,000 shares, indicating a strong belief in the fund's performance and prospects.
First Trust High Yield Opportunities 2027 Term Fund is known for its focus on high-yield debt securities and aims to provide investors with a high level of current income. The fund operates with a defined term, set to terminate in 2027, which can appeal to investors looking for a potential wind-down of assets and distribution of the remaining net assets at that time.
Investors closely monitor insider transactions like Bowen's as they can provide insights into an executive's confidence in the company's future performance. The recent acquisition by a key figure within the company could signal a positive outlook for the fund.
It's important to note that insider transactions are common and are not necessarily indicative of future stock performance. However, they do offer a glimpse into how the individuals who are most familiar with the company are acting in terms of their personal investments in the stock.
First Trust High Yield Opportunities 2027 Term Fund's shares trade under the ticker FTHY and are part of the diverse financial instruments managed by First Trust Advisors LP, a firm known for its range of exchange-traded and closed-end fund offerings.
InvestingPro Insights
Following the recent insider share purchase by James A. Bowen, a director at First Trust Advisors LP, the First Trust High Yield Opportunities 2027 Term Fund (NYSE:FTHY) continues to display attractive metrics for investors seeking income. The fund's dividend yield stands at a robust 10.93% as of the latest data, showcasing its potential to deliver a high level of current income, which aligns with the fund's investment objectives.
Investors who track performance over time might be encouraged by the fund's price total returns. In the short term, the fund has seen a modest increase with a 1 Month Price Total Return of 0.13%, while the 3 Month Price Total Return is more significant at 5.41%. Looking at a longer horizon, the fund has realized a 6 Month Price Total Return of 16.31%, and a 1 Year Price Total Return of 13.19%, potentially reinforcing Bowen's confidence in the fund's performance.
Another noteworthy metric for potential investors is the fund's trading volume. With an Average Daily Volume over the past three months of 0.17M USD, the fund maintains sufficient liquidity, making it easier for investors to enter or exit positions.
For individuals intrigued by these insights and seeking more in-depth analysis, InvestingPro offers additional tips on investment strategies and fund performance. Currently, there are several more "InvestingPro Tips" available to help refine your investment decisions. To gain access to these valuable insights, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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