Insider Spends US$308k Buying More Shares In Texas Capital Bancshares
Potential Texas Capital Bancshares, Inc. (NASDAQ:TCBI) shareholders may wish to note that the Independent Chairman, Robert Stallings, recently bought US$308k worth of stock, paying US$61.53 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.9%.
See our latest analysis for Texas Capital Bancshares
Texas Capital Bancshares Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman Robert Stallings was not the only time they bought Texas Capital Bancshares shares this year. Earlier in the year, they paid US$65.35 per share in a US$1.2m purchase. That means that even when the share price was higher than US$63.37 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Texas Capital Bancshares insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$54.15. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and 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!
Texas Capital Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Texas Capital Bancshares Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of Texas Capital Bancshares shares, worth about US$32m. 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 is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Texas Capital Bancshares shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Texas Capital Bancshares has 1 warning sign we think you should be aware of.
But note: Texas Capital Bancshares may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.
