Who Has Been Selling DXP Enterprises, Inc. (NASDAQ:DXPE) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell DXP Enterprises, Inc. (NASDAQ:DXPE), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for DXP Enterprises
DXP Enterprises Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Chairman of the Board David Little for US$2.4m worth of shares, at about US$48.41 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$32.26. So it may not shed much light on insider confidence at current levels.
In total, DXP Enterprises insiders sold more than they bought over the last year. The sellers received a price of around US$45.94, on average. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (US$32.26), so it probably doesn’t tell us a lot about the value on offer today. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does DXP Enterprises 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 9.0% of DXP Enterprises shares, worth about US$51m. 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 DXP Enterprises Insiders?
The fact that there have been no DXP Enterprises insider transactions recently certainly doesn’t bother us. Still, the insider transactions at DXP Enterprises in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in DXP Enterprises, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
