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The Executive VP of Dynex Capital, Inc. (NYSE:DX), Robert Colligan, Just Bought A Few More Shares

Simply Wall St ·  Aug 27, 2022 08:40

Potential Dynex Capital, Inc. (NYSE:DX) shareholders may wish to note that the Executive VP, Robert Colligan, recently bought US$158k worth of stock, paying US$15.84 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Dynex Capital

The Last 12 Months Of Insider Transactions At Dynex Capital

In the last twelve months, the biggest single purchase by an insider was when CEO, Co-Chief Investment Officer & Director Byron Boston bought US$201k worth of shares at a price of US$15.98 per share. That means that an insider was happy to buy shares at above the current price of US$15.93. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Dynex Capital insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volumeNYSE:DX Insider Trading Volume August 27th 2022

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

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Dynex Capital insiders own about US$13m worth of shares. That equates to 1.8% 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 Dynex Capital Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Dynex Capital shares, given these transactions (along with notable insider ownership of 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. Be aware that Dynex Capital is showing 4 warning signs in our investment analysis, and 2 of those are a bit concerning...

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, 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.

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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