Chairman of the Board of DXP Enterprises David Little Buys More Stock

Investors who take an interest in DXP Enterprises, Inc. (NASDAQ:DXPE) should definitely note that the Chairman of the Board, David Little, recently paid US$82.70 per share to buy US$496k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At DXP Enterprises

In fact, the recent purchase by David Little was the biggest purchase of DXP Enterprises shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$82.88. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the DXP Enterprises insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was David Little.

In total, DXP Enterprises insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for DXP Enterprises

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Does DXP Enterprises Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. DXP Enterprises insiders own about US$244m worth of shares (which is 19% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About DXP Enterprises Insiders?

Unfortunately, there has been more insider selling of DXP Enterprises stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since DXP Enterprises is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of 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. Be aware that DXP Enterprises is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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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.