Several insiders got a bigger position in Texas Capital Bancshares, Inc. (NASDAQ:TCBI) shares over the past 12 months. This is reassuring as it suggests insiders have heightened optimism about the company’s prospects.
While insider trading isn’t the most important thing when it comes to long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.
Check out our latest analysis for Texas Capital Bancshares
Texas Capital Bancshares Insider Trading Over the Past Year
Independent director Robert Stallings made the biggest insider buy in the past 12 months. This single transaction was for $3.3 million worth of shares at a price of $60.87 each. Clearly, an insider wanted to buy, even at a price higher than the current stock price (ie US$54.32). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. We always take careful note of the price paid by insiders when buying stocks. Generally speaking, it comes to our attention when insiders have bought stocks at higher prices than they are now, as it suggests that they thought the stock was worth buying, even at a higher price.
Over the past year, we can see that insiders bought 107.16k shares worth $6.5 million. But they sold 976.00 shares for US$67,000. Overall, Texas Capital Bancshares insiders have been net buyers over the past year. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
There are many other companies whose insiders buy shares. You probably do do not want to miss this free list of growing companies insiders are buying.
Texas Capital Bancshares Insider Ownership
Many investors like to check how much a company is owned by insiders. We generally like to see fairly high levels of insider ownership. Insiders of Texas Capital Bancshares own about $24 million worth of stock. This equals 0.9% of the business. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what do Texas Capital Bancshares insider trading indicate?
There have been no insider trades in the last three months – that’s not saying much. But insiders have shown more appetite for the stock over the past year. Overall, we see nothing to suggest that insiders at Texas Capital Bancshares doubt the company, and they own stock. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. At Simply Wall St, we found 1 warning sign for Texas Capital Bancshares that deserve your attention before buying shares.
But note: Texas Capital Bancshares may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.