DXP Enterprises: 6 Different Insiders Have Purchased Shares During The Last 30 Days

Jun. 2.14 | About: DXP Enterprises, (DXPE)

Summary

6 insiders purchased DXP Enterprises stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

4 of these 6 insiders increased their holdings by more than 10%.

DXP Enterprises (NASDAQ:DXPE) is engaged in distributing maintenance, repair, and operating products, equipment, and services to industrial customers in the United States.
Click to enlarge

Insider buying during the last 30 days

Here is a table of DXP Enterprises' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Kent Yee SVP May 15-28 400 18,386 shares +2.2%
Todd Hamlin SVP May 15 300 18,633 shares +1.6%
David Vinson SVP May 15 1,400 15,432 shares +10.0%
John Jeffery SVP May 15 1,100 11,665 shares +10.4%
Wayne Crane SVP May 15 1,000 3,000 shares +50.0%
Stephen Wick VP May 15 500 1,042 shares +92.3%
Click to enlarge

There have been 4,700 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of DXP Enterprises' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
May 2014 4,700 0
April 2014 0 0
March 2014 600 12,979
February 2014 0 16,799
January 2014 0 70,222
December 2013 0 19,684
November 2013 0 0
October 2013 0 2,000
September 2013 0 3,000
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 4,100 0
April 2013 0 0
March 2013 0 3,500
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 9,400 shares purchased and there have been 128,184 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

DXP Enterprises reported the first-quarter financial results on May 12 with the following highlights:

Revenue $348.5 million
Net income $11.6 million
Cash $12.1 million
Debt $470.5 million
Click to enlarge

The stock plunged after these results, and the six insiders purchased their shares after the plunge.

Click to enlarge

(Source: Investor presentation)

Competition

DXP Enterprises' competitors include Applied Industrial Technologies (NYSE:AIT), and MSC Industrial Direct (NYSE:MSM). Here is a table comparing these companies.

Company DXPE AIT MSM
Market Cap: 1.01B 1.99B 5.73B
Employees: 3,207 5,132 6,133
Qtrly Rev Growth (yoy): 0.20 -0.01 0.16
Revenue: 1.30B 2.45B 2.65B
Gross Margin: 0.30 0.28 0.46
EBITDA: 121.90M 194.01M 461.33M
Operating Margin: 0.08 0.07 0.15
Net Income: 58.53M 115.42M 225.63M
EPS: 3.82 2.72 3.59
P/E: 18.23 17.51 25.63
PEG (5 yr expected): 1.25 1.35 1.69
P/S: 0.78 0.82 2.14
Click to enlarge

DXP Enterprises has the lowest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
AIT 0 15,260
MSM 0 517,880
Click to enlarge

Only DXP Enterprises has seen intensive insider buying during the last 30 days.

Conclusion

There have been six different insiders buying DXP Enterprises, and there have not been any insiders selling DXP Enterprises during the last 30 days. Four of these six insiders increased their holdings by more than 10%. DXP Enterprises has an insider ownership of 27.30%.

The six insiders purchased their shares at prices ranging from $64.79 to $69.94. I believe DXP Enterprises could be a good pick below $69.94 based on the intensive insider buying.

Click to enlarge

(Source: Investor presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DXPE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.