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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Triumph Bancorp, Inc. (NASDAQ:TBK).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
The Last 12 Months Of Insider Transactions At Triumph Bancorp
In the last twelve months, the biggest single sale by an insider was when the , Daniel Karas, sold US$126k worth of shares at a price of US$41.96 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$28.85. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Daniel Karas.
In the last twelve months insiders purchased 19828 shares for US$623k. But insiders sold 3000 shares worth US$126k. In the last twelve months there was more buying than selling by Triumph Bancorp insiders. The average buy price was around US$31.41. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Triumph Bancorp Insiders Bought Stock Recently
It's good to see that Triumph Bancorp insiders have made notable investments in the company's shares. In total, insiders bought US$400k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Triumph Bancorp Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Triumph Bancorp insiders own about US$64m worth of shares. That equates to 8.4% of the company. 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 Triumph Bancorp Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Triumph Bancorp insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Triumph Bancorp, you should check out this free report on analyst forecasts for the company.
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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.