November 9, 2007 / 8:49 PM / 11 years ago

Allied Capital shares jump

NEW YORK (Reuters) - Shares of Allied Capital Corp (ALD.N) jumped on Friday, as the business development company’s chief executive and four other top managers disclosed they had purchased about $1.7 million in company stock.

The insider stock purchases came just two days after the company’s stock suffered its biggest one-day fall in five years, as it reported lower third-quarter investment income.

In a U.S. Securities and Exchange Commission filing, William Walton, who serves as the company’s chairman president and chief executive, disclosed he had purchased 50,000 shares of the company on Friday for prices ranging from $22.32 to $23 per share.

“The purchase by Walton was his largest in at least five years and the largest by any Allied Capital insider over the same period,” analysts at data tracker wrote in a research note.

After the purchase, Walton now holds more than 880,000 shares of the company, according to the filing.

In a separate filing, Chief Financial Officer Penelope Roll revealed she had purchased 11,000 shares on Friday for an average price of $22.49 per share. She holds more than 187,000 shares of the company, according to the filing.

Director John Firestone purchased 10,000 shares, while Managing Director Justin Maccarone and Lawrence Herbert, who serves on the company’s board of directors, revealed they had purchased 5,000 shares and 5,600 shares, respectively.

Allied Capital, on Wednesday, posted quarterly investment income results that trailed Wall Street estimates by a wide margin, pushing shares of the company down nearly 15 percent in a single day.

The stock hit a 52-week low on Thursday of $21.55.

Shares bounced back on Friday and were up $1.37 or 6.2 percent at $23.34 in late afternoon trading on the New York Stock Exchange after reaching as high as $24.62 earlier.

Reporting by Emily Chasan

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