Potential Destination XL Group, Inc. (NASDAQ:DXLG) shareholders may wish to note that the Independent Director, Jack Boyle, recently bought US$114k worth of stock, paying US$1.14 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 181%, potentially signalling some real optimism.
Destination XL Group Insider Transactions Over The Last Year
Notably, that recent purchase by Jack Boyle is the biggest insider purchase of Destination XL Group shares that we've seen in the last year. That implies that an insider found the current price of US$1.26 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Destination XL Group share holders is that insiders were buying at near the current price.
In the last twelve months Destination XL Group insiders were buying shares, but not selling. Their average price was about US$1.39. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Destination XL Group shares, worth about US$15m. 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 is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Destination XL Group insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
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