How Much Are Texas Capital Bancshares, Inc. (NASDAQ:TCBI) Insiders Spending On Buying Shares?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Texas Capital Bancshares, Inc. (NASDAQ:TCBI).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. 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.’
Check out our latest analysis for Texas Capital Bancshares
Texas Capital Bancshares Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Director Ian Turpin for US$495k worth of shares, at about US$93.06 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$53.02. So it is hard to draw any strong conclusion from it. Ian Turpin was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid US$520k for 7.02k shares. On the other hand they divested 5.32k shares, for US$495k. In the last twelve months there was more buying than selling by Texas Capital Bancshares insiders. The average buy price was around US$74.07. These transactions suggest that insiders have considered the current price of US$53.02 attractive. The chart below shows insider transactions over the last year. 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.
Insiders at Texas Capital Bancshares Have Bought Stock Recently
It’s good to see that Texas Capital Bancshares insiders have made notable investments in the company’s shares. In total, insiders bought US$337k 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 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Texas Capital Bancshares insiders own 0.6% of the company, worth about US$17m. 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 Do The Texas Capital Bancshares Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Texas Capital Bancshares we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
