A number of insiders have significantly increased their holdings in Texas Capital Bancshares, Inc. (NASDAQ: TCBI) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.
While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.
If you’re not interested in researching TCBI’s insider trading, we have a free list of interesting investment ideas to potentially inspire your next investment!
The last 12 months of insider trading at Texas Capital Bancshares
Over the past year, we can see that the biggest insider buy was made by independent director Robert Stallings for $3.3 million worth of shares, at around $60.87 per share. This means that an insider was happy to buy shares at around the current price of US$62.36. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. We always like to see insider buying, but it’s worth noting if those buys were made well below the current stock price, as the discount to value may have diminished as the price rose. Fortunately, insiders at Texas Capital Bancshares decided to buy shares at prices close to current prices.
While Texas Capital Bancshares insiders have bought shares over the past year, they haven’t sold. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!
Texas Capital Bancshares isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Texas Capital Bancshares insiders recently bought shares
It’s good to see that Texas Capital Bancshares insiders have made notable investments in the company’s stock. Independent director Robert Stallings spent $5.1 million on shares and there were no sales. This could be interpreted as suggesting a positive outlook.
Does Texas Capital Bancshares boast of high 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 own 1.1% of Texas Capital Bancshares stock, worth approximately $33 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?
It is certainly positive to see the recent insider buying. And an analysis of last year’s transactions 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. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Texas Capital Bancshares.
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.
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