Stock Analysis

Dollar Tree Insiders Added US$1.43m Of Stock To Their Holdings

NasdaqGS:DLTR
Source: Shutterstock

Over the last year, a good number of insiders have significantly increased their holdings in Dollar Tree, Inc. (NASDAQ:DLTR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Dollar Tree

Dollar Tree Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & CEO Richard Dreiling for US$1.0m worth of shares, at about US$142 per share. That means that an insider was happy to buy shares at around the current price of US$146. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Dollar Tree share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid US$1.4m for 10.54k shares. On the other hand they divested 2.74k shares, for US$348k. In the last twelve months there was more buying than selling by Dollar Tree insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:DLTR Insider Trading Volume February 21st 2024

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.

Insider Ownership Of Dollar Tree

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dollar Tree insiders own about US$78m worth of shares. That equates to 0.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Dollar Tree Insiders?

It doesn't really mean much that no insider has traded Dollar Tree shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Dollar Tree and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dollar Tree. At Simply Wall St, we found 1 warning sign for Dollar Tree that deserve your attention before buying any shares.

But note: Dollar Tree 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.

Valuation is complex, but we're helping make it simple.

Find out whether Dollar Tree is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.