Who Has Been Selling LegacyTexas Financial Group, Inc. (NASDAQ:LTXB) Shares?
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 before you buy or sell LegacyTexas Financial Group, Inc. (NASDAQ:LTXB), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for LegacyTexas Financial Group
The Last 12 Months Of Insider Transactions At LegacyTexas Financial Group
In the last twelve months, the biggest single sale by an insider was when Director James McCall sold US$539k worth of shares at a price of US$43.15 per share. That is hardly a positive sign, even though it took place above the latest price (US$34.47). So it is hard to draw any strong conclusion from it.
Over the last year, we note insiders sold 43.62k shares worth US$1.9m. Over the last year we saw more insider selling of LegacyTexas Financial Group shares, than buying. The sellers received a price of around US$43.21, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$34.47). The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
LegacyTexas Financial Group Insiders Are Selling The Stock
The last quarter saw substantial insider selling of LegacyTexas Financial Group shares. Specifically, Vice Chairman of the Board George Fisk ditched US$156k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Insider Ownership of LegacyTexas Financial Group
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that LegacyTexas Financial Group insiders own 2.4% of the company, worth about US$38m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At LegacyTexas Financial Group Tell Us?
An insider hasn’t bought LegacyTexas Financial Group stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. On the plus side, LegacyTexas Financial Group makes money, and is growing profits. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. 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.
But note: LegacyTexas Financial Group 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.
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.
