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Bullish Texas Capital Bancshares, Inc. (NASDAQ:TCBI) insiders filled their treasuries with US$6.5m worth of stock over last year

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Multiple insiders secured a larger position in Texas Capital Bancshares, Inc. (NASDAQ:TCBI) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Texas Capital Bancshares

Texas Capital Bancshares Insider Transactions Over The Last Year

The Independent Director Robert Stallings made the biggest insider purchase in the last 12 months. That single transaction was for US$3.3m worth of shares at a price of US$60.87 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$54.32). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 107.16k shares worth US$6.5m. But they sold 976.00 shares for US$67k. Overall, Texas Capital Bancshares insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Texas Capital Bancshares

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Texas Capital Bancshares insiders own about US$24m worth of shares. That equates to 0.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Texas Capital Bancshares Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Texas Capital Bancshares insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Texas Capital Bancshares that deserve your attention before buying any shares.

But note: Texas Capital Bancshares 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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