Insiders of Texas Pacific Land Corporation (NYSE:TPL) are probably glad they bought last year as their US$2.1m investment now stands at US$2.6m
Insiders who purchased Texas Pacific Land Corporation (NYSE:TPL) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$2.1m is now worth US$2.6m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Texas Pacific Land
Texas Pacific Land Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Dana McGinnis, for US$1.3m worth of shares, at about US$1,270 per share. That means that an insider was selling shares at slightly below the current price (US$2,068). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 48% of Dana McGinnis's holding. Dana McGinnis was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 1.24k shares for US$2.1m. But they sold 1.00k shares for US$1.3m. In the last twelve months there was more buying than selling by Texas Pacific Land insiders. The average buy price was around US$1,708. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Texas Pacific Land Insiders Bought Stock Recently
Over the last quarter, Texas Pacific Land insiders have spent a meaningful amount on shares. We can see that Independent Trustee Murray Stahl paid US$725k for shares in the company. No-one sold. This makes one think the business has some good points.
Insider Ownership Of Texas Pacific Land
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Texas Pacific Land shares, worth about US$23m. 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 Pacific Land Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Texas Pacific Land shares, given these transactions (along with notable insider ownership of the company). Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Texas Pacific Land.
Of course Texas Pacific Land may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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.
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