In a recent move signaling confidence in the company, David D. Grumhaus Jr., President and CEO of DTF Tax-Free Income 2028 Term Fund Inc (NYSE:DTF), purchased shares of the company’s common stock, investing a total of approximately $26,814 .
The transactions, which took place on April 9 and 10, 2024, saw Grumhaus acquire 6 shares at $10.77 each and 2,500 shares at $10.70 each. This purchase brings the CEO’s total number of shares to 5,013,597, including fractional shares acquired through a dividend reinvestment plan.
Investors often view insider transactions as a signal of the leader’s confidence in the company’s future performance. Grumhaus’ decision to increase its stake in the DTF Tax-Free Income 2028 Term Fund by purchasing shares on the open market can be considered a positive indicator.
It’s worth noting that the reported stocks also include a small number of shares acquired through a dividend reinvestment plan, as noted in the document’s footnotes. The total number of shares held through this plan by the reporting party is equal to 7,597.
DTF Tax-Free Income 2028 Term Fund Inc specializes in tax-free income investment strategies, and that insider activity may attract the attention of investors trying to understand the company’s potential direction.
The details of these transactions were disclosed in accordance with SEC regulations, which require insiders to report their trading activities.
Insights on InvestingPro
The recent insider purchase by David D. Grumhaus Jr., President and CEO of DTF Tax-Free Income 2028 Term Fund Inc, is in line with the company’s demonstrated stability, as reflected in InvestingPro’s recommendations. DTF is known for its low price volatility, a characteristic that may appeal to investors seeking more stable securities in turbulent markets. Additionally, the company has a long history of dividend reliability, having maintained dividend payments for 33 consecutive years, which could be a reassuring factor for income-focused investors.
Looking at data from InvestingPro, DTF Tax-Free Income 2028 Term Fund Inc has a market capitalization of $75.29 million and a P/E ratio of 24.45, which indicates investors’ expectations of future earnings. The company’s revenue in the trailing twelve months as of Q4 2023 was $3.93 million, although it saw declining revenue growth over the same period. Despite this, the gross profit margin remains at 100%, demonstrating the company’s ability to maintain profitability.
For investors interested in the company’s stock performance, DTF is trading near its 52-week low, which may present a buying opportunity for those who believe in the company’s fundamentals and long-term strategy. With a dividend yield of 3.63% according to the latest data, DTF may also be attractive to those looking for regular income from their investments. The CEO’s purchase could be seen as a vote of confidence in the company’s ability to address revenue challenges while continuing to reward shareholders.
For deeper analysis and additional recommendations on InvestingPro, including assessing the company’s liquidity and profitability over the trailing twelve months, interested readers can visit InvestingPro. There are 5 more tips to help investors make more informed decisions. To access these insights and more, consider signing up for an annual or two-year Pro and Pro+ subscription with an exclusive 10% discount using the coupon code PRONEWS24.
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