Those who follow with Texas Capital Bancshares, Inc. (NASDAQ:TCBI) will no doubt be intrigued by the recent stock purchase by the company’s independent director Robert Stallings, who spent US$1.2 million on stock at an average price of US$50.98. This increased their turnout by 50%, which arguably implies the kind of confidence needed for a shy, sweet nerd to ask the most popular kid in school out on a date.
See our latest analysis for Texas Capital Bancshares
The last 12 months of insider trading at Texas Capital Bancshares
Notably, this recent purchase by independent director Robert Stallings wasn’t the only time they bought shares of Texas Capital Bancshares this year. Previously, they made an even bigger purchase of shares worth US$3.3 million at US$60.87 per share. This means that even when the stock price was above US$54.87 (the recent price), an insider wanted to buy some stock. Although their perspective has changed since the purchase, it at least suggests they have confidence in the company’s future. In our view, the price an insider pays for a stock is very important. 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.
Texas Capital Bancshares insiders may have bought shares in the past year, but they haven’t sold any. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
Texas Capital Bancshares isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. High insider participation often makes company management more concerned with the interests of shareholders. It appears Texas Capital Bancshares insiders own 0.8% of the company, which is worth around $23 million. 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 does this data suggest about Texas Capital Bancshares insiders?
Good to see recent purchases. And longer-term insider trading also gives us confidence. Given that insiders also own a good chunk of Texas Capital Banc stock, we think they’re probably pretty confident of a bright future. 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.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity 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.