In the eyes of investors, one of the most encouraging actions a company's management team can take is to confidently load up on its own shares.
That's what happened late Wednesday with budget retailer Dollar Tree (DLTR 2.85%), and the market showed its gratitude by bidding the company's share price up more than 8%. This was a far more impressive performance than the S&P 500's (^GSPC 1.66%) 0.1% tilt into the black.
The CEO made a big move
The manager making the buys was no less than CEO Stewart Glendinning, who disclosed in a regulatory document filed near the end of Wednesday's trading session that he purchased a total of 17,000 shares of Dollar Tree's common stock.
That wasn't only a hefty buy in and of itself -- it added considerably to Glendinning's existing position. According to the filing, he now owns a total of 49,353 shares. At the company's most recent closing price, that holding would be worth over $3.9 million.
Neither Dollar Tree nor Glendinning has officially commented on the CEO's move. It comes at a time when the retail sector in general is rather wobbly, due to fears that a protracted trade war arising from the recently imposed tariffs will affect both the input prices of goods and the U.S. consumer's willingness to buy them.
NASDAQ: DLTR
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Counting on an upswing?
Dollar Tree would be in somewhat of an advantageous position in that case. As a discount retailer, it would likely see a boost in business from consumers tilting away from higher-priced retailers to find bargains at discounters. So Glendinning's buy might not only be a sentiment-boosting action -- the CEO could stand to make some good coin if such a dynamic plays out.
