It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Texas Capital Bancshares, Inc.'s (NASDAQ:TCBI) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Texas Capital Bancshares Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Chairman Robert Stallings for US$498k worth of shares, at about US$55.48 per share. We do like to see buying, but this purchase was made at well below the current price of US$67.97. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 23.00k shares for US$1.3m. But they sold 7.00k shares for US$379k. In total, Texas Capital Bancshares insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Texas Capital Bancshares
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Texas Capital Bancshares insiders own 1.4% of the company, worth about US$44m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Texas Capital Bancshares Insiders?
It doesn't really mean much that no insider has traded Texas Capital Bancshares shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Texas Capital Bancshares and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Texas Capital Bancshares has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
