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Whilst it may not be a huge deal, we thought it was good to see that the Duluth Holdings Inc. (NASDAQ:DLTH) Independent Director, Brett Paschke, recently bought US$91k worth of stock, for US$1.81 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Duluth Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Brett Paschke is the biggest insider purchase of Duluth Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$2.08), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Duluth Holdings insiders bought shares during the last year, they didn't sell. They paid about US$2.15 on average. These transactions suggest that insiders have considered the current price attractive. 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 Duluth Holdings
Duluth Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Duluth Holdings insiders own about US$24m worth of shares. That equates to 40% 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.
What Might The Insider Transactions At Duluth Holdings Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Duluth Holdings we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Duluth Holdings and understanding it should be part of your investment process.