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Have DXP Enterprises Insiders Been Selling Stock?

Simply Wall St ·  Aug 21 06:14

Anyone interested in DXP Enterprises, Inc. (NASDAQ:DXPE) should probably be aware that the Senior VP and Chief Marketing & Technology Officer, Paz Maestas, recently divested US$123k worth of shares in the company, at an average price of US$49.00 each. On the bright side, that sale was only 0.4% of their holding, so we doubt it's very meaningful, on its own.

The Last 12 Months Of Insider Transactions At DXP Enterprises

Notably, that recent sale by Senior VP and Chief Marketing & Technology Officer Paz Maestas was not the only time they sold DXP Enterprises shares this year. Earlier in the year, they fetched US$49.14 per share in a -US$491k sale. So we know that an insider sold shares at around the present share price of US$49.04. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in DXP Enterprises didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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NasdaqGS:DXPE Insider Trading Volume August 21st 2024

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does DXP Enterprises Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that DXP Enterprises insiders own 19% of the company, worth about US$150m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At DXP Enterprises Tell Us?

An insider sold DXP Enterprises shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that DXP Enterprises is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 2 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in DXP Enterprises.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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