The Executive Chairman & CEO of Dollar Tree, Inc. (NASDAQ:DLTR), Richard Dreiling, Just Bought 39,444% More Shares

Those following along with Dollar Tree, Inc. (NASDAQ:DLTR) will no doubt be intrigued by the recent purchase of shares by Richard Dreiling, Executive Chairman & CEO of the company, who spent a stonking US$1.0m on stock at an average price of US$142. That purchase boosted their holding by 39,444%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Dollar Tree

Dollar Tree Insider Transactions Over The Last Year

In fact, the recent purchase by Richard Dreiling was the biggest purchase of Dollar Tree shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$140). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$1.1m for 7.53k shares. On the other hand they divested 1.89k shares, for US$305k. In total, Dollar Tree insiders bought more than they sold over 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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insider-trading-volume

Dollar Tree is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Dollar Tree Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Dollar Tree insiders own about US$78m worth of shares. That equates to 0.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Dollar Tree Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Dollar Tree we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Dollar Tree, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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.

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