Even if it's not a huge purchase, we think it was good to see that Deborah Merrill, the CFO, VP & Treasurer of Delta Apparel, Inc. (NYSEMKT:DLA) recently shelled out US$75k to buy stock, at US$15.00 per share. However, we do note that it only increased their holding by 4.0%, and it wasn't a huge purchase by absolute value, either.
Delta Apparel Insider Transactions Over The Last Year
Notably, that recent purchase by Deborah Merrill is the biggest insider purchase of Delta Apparel shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$12.39. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$149k for 9.93k shares. But they sold 2000 shares for US$46k. In the last twelve months there was more buying than selling by Delta Apparel insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Delta Apparel is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Delta Apparel 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Delta Apparel insiders own 17% of the company, 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 Does This Data Suggest About Delta Apparel Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Delta Apparel shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Delta Apparel (including 1 which is concerning).
Of course Delta Apparel 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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