Investors who take an interest in Texas Pacific Land Trust (NYSE:TPL) should definitely note that insider Allan Tessler recently paid US$604 per share to buy US$302k worth of the stock. Although the purchase only increased their holding by 4.3%, it is still a solid purchase in our view.
Texas Pacific Land Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Maurice Meyer, for US$573k worth of shares, at about US$576 per share. That means that an insider was selling shares at slightly below the current price (US$612). 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. This single sale was just 1.4% of Maurice Meyer's stake. The only individual insider seller over the last year was Maurice Meyer.
Over the last year, we can see that insiders have bought 900 shares worth US$548k. But they sold 1500 for US$877k. Maurice Meyer sold a total of 1500 shares over the year at an average price of US$584. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Texas Pacific Land Trust
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. From our data, it seems that Texas Pacific Land Trust insiders own 0.2% of the company, worth about US$9.8m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Texas Pacific Land Trust Tell Us?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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.
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.
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.