Dollar Tree (DLTR) has been experiencing a downward trend in its stock price, reaching a nearly two-year low. However, amidst this decline, one director of the discount retailer saw an opportunity to invest.
In 2022, while the S&P 500 index dropped 19%, Dollar Tree's stock remained relatively flat. Unfortunately, in 2023, the company's shares have plummeted by 25%, while the S&P 500 has seen a 12% gain.
In January, Dollar Tree faced significant changes as activist investor Mantle Ridge initiated a series of shifts within the company, including the departure of President and CEO Michael Witynski. Despite this, Dollar Tree management maintained an optimistic outlook in March. However, by May, the company fell short of first-quarter expectations and issued a lower guidance, causing its stock to decline further. The second-quarter earnings report, released in August, also disappointed investors.
During this period of decline, Dollar Tree's stock hit an intraday low of $103.94 on September 25th. This marked the first time it had reached this level since October 2021.
On September 22nd, Dollar Tree director Daniel J. Heinrich made a notable move by purchasing 1,650 shares on the open market, spending a total of $173,650. The average price per share was $105.24. Heinrich disclosed that this transaction was an initial purchase of Dollar Tree stock through a trust he controls. In addition to this purchase, Heinrich already owns 3,575 shares in a personal account.
It is worth noting that Heinrich's involvement with Dollar Tree began in March 2022, when he joined the board of directors. He has an impressive background, having previously served as the chief financial officer of Clorox (CLX). Prior to this recent purchase, he bought 425 shares in the month he joined Dollar Tree's board, at an average price of $156.10 per share.
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