Potential DXP Enterprises, Inc. (NASDAQ:DXPE) shareholders may wish to note that the Independent Director, Timothy Halter, recently bought US$123k worth of stock, paying US$12.25 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 38%.
DXP Enterprises Insider Transactions Over The Last Year
Notably, that recent purchase by Timothy Halter is the biggest insider purchase of DXP Enterprises shares that we've seen in the last year. That means that even when the share price was higher than US$11.87 (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. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Timothy Halter.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
DXP Enterprises is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of DXP Enterprises
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that DXP Enterprises insiders own 8.3% of the company, worth about US$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At DXP Enterprises Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in DXP Enterprises 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 help with this, we've discovered 3 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in DXP Enterprises.
But note: DXP Enterprises 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, but not derivative transactions.
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