Over the last year, a good number of insiders have significantly increased their holdings in TXO Partners, L.P. (NYSE:TXO). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

TXO Partners Insider Transactions Over The Last Year

Notably, that recent purchase by EVP & Director Keith Hutton was not the only time they bought TXO Partners shares this year. They previously made an even bigger purchase of US$18m worth of shares at a price of US$20.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$17.25). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 1.10m shares for US$21m. But insiders sold 14.34k shares worth US$293k. In total, TXO Partners insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TXO Partners is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

TXO Partners Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at TXO Partners. Not only was there no selling that we can see, but they collectively bought US$1.9m worth of shares. This could be interpreted as suggesting a positive outlook.

Does TXO Partners Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. TXO Partners insiders own about US$173m worth of shares (which is 24% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About TXO Partners Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest TXO Partners insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for TXO Partners (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.