Insider Returns Down To US$62k As Xcel Brands' Stock Dips 14%
Xcel Brands, Inc. (NASDAQ:XELB) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 14% decline in the stock price. After accounting for the recent loss, the US$211.3k worth of shares they purchased is now worth US$273.0k, suggesting a good return on their investment.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Xcel Brands
The Last 12 Months Of Insider Transactions At Xcel Brands
Notably, that recent purchase by Robert D'Loren is the biggest insider purchase of Xcel Brands shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$0.84. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Xcel Brands insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Xcel Brands Insiders Bought Stock Recently
It's good to see that Xcel Brands insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$211k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Xcel Brands 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. It appears that Xcel Brands insiders own 38% of the company, worth about US$7.6m. 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 Xcel Brands Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Xcel Brands insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Xcel Brands you should know about.
But note: Xcel Brands may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
