Xcel Brands' Market Cap Up US$857k Following Year Of Insider Stock Buying

Xcel Brands, Inc. (NASDAQ:XELB) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 13% resulting in a US$857k addition to the company’s market value. As a result, the stock they originally bought for US$237.6k is now worth US$349.9k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Xcel Brands

In the last twelve months, the biggest single purchase by an insider was when Chairman Robert D'Loren bought US$137k worth of shares at a price of US$1.10 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.62. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Xcel Brands insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and 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!

See our latest analysis for Xcel Brands

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Xcel Brands Have Bought Stock Recently

It's good to see that Xcel Brands insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$238k worth of shares. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Xcel Brands insiders own 29% of the company, worth about US$2.1m. 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 Xcel Brands Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Xcel Brands we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Xcel Brands. Case in point: We've spotted 4 warning signs for Xcel Brands you should be aware of, and 2 of these can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.