Destination XL Group's US$31m Market Cap Fall Books Insider Losses
The recent price decline of 12% in Destination XL Group, Inc.'s (NASDAQ:DXLG) stock may have disappointed insiders who bought US$199.6k worth of shares at an average price of US$4.25 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$176.7k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Destination XL Group
Destination XL Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Jack Boyle for US$141k worth of shares, at about US$4.25 per share. That means that even when the share price was higher than US$3.76 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Jack Boyle was the only individual insider to buy shares in the last twelve months.
Jack Boyle purchased 47.00k shares over the year. The average price per share was US$4.25. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Destination XL Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Destination XL Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Destination XL Group shares, worth about US$25m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Destination XL Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Destination XL Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Destination XL Group and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Destination XL Group and we suggest you have a look.
Of course Destination XL Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
