In a recent move that signals confidence in the company, David D. Grumhaus Jr., President and CEO of DTF Tax-Free Income 2028 Term Fund Inc (NYSE:DTF), has 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 acquiring 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, when including the fractional shares acquired through a dividend reinvestment plan.

Investors often look to insider transactions as a signal of a leader’s belief in the company’s future performance. The decision by Grumhaus to increase his stake in DTF Tax-Free Income 2028 Term Fund by purchasing shares on the open market can be seen as a positive indicator.

It’s worth noting that the reported shares also include a small number of shares acquired through a dividend reinvestment plan, as disclosed in the footnotes of the filing. The total number of shares held through this plan by the reporting person is 7.597.

DTF Tax-Free Income 2028 Term Fund Inc specializes in tax-free income investment strategies, and such insider activity may draw attention from investors seeking to understand the potential direction of the company.

The details of these transactions were disclosed in accordance with SEC regulations, which require insiders to report their trading activities.

InvestingPro Insights

The recent insider purchase by David D. Grumhaus Jr., President and CEO of DTF Tax-Free Income 2028 Term Fund Inc, aligns with the company’s demonstrated stability, as reflected in the InvestingPro Tips. DTF has been noted for its low price volatility, a characteristic that may appeal to investors looking for steadier stocks in turbulent markets. Additionally, the company has a longstanding history of dividend reliability, having maintained dividend payments for 33 consecutive years, which could be a reassuring factor for income-focused investors.

Looking at the InvestingPro Data, DTF Tax-Free Income 2028 Term Fund Inc has a market capitalization of $75.29 million and a P/E ratio of 24.45, indicating investor expectations of future earnings. The company’s revenue for the last twelve months as of Q4 2023 was $3.93 million, although it has experienced a decline in revenue growth during the same period. Despite this, the gross profit margin remains at 100%, showing 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% as of the latest data, DTF may also be attractive to those seeking regular income from their investments. The CEO’s purchase could be seen as a vote of confidence in the company’s ability to navigate through its revenue challenges while continuing to reward shareholders.

For more in-depth analysis and additional InvestingPro Tips, including the company’s liquidity assessment and profitability over the last twelve months, interested readers can visit InvestingPro. There are 5 additional tips available to help investors make more informed decisions. To access these insights and more, consider subscribing to a yearly or biyearly Pro and Pro+ subscription with an exclusive 10% off using the coupon code PRONEWS24.

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