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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Spirit of Texas Bancshares, Inc. (NASDAQ:STXB).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Spirit of Texas Bancshares
Over the last year, we can see that the biggest insider purchase was by Director Robert Beall for US$231k worth of shares, at about US$21.00 per share. So it’s clear an insider wanted to buy, at around the current price, which is US$22.66. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Spirit of Texas Bancshares insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 31889 shares worth US$653k. In the last twelve months Spirit of Texas Bancshares insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Spirit of Texas Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Spirit of Texas Bancshares Have Bought Stock Recently
Over the last quarter, Spirit of Texas Bancshares insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$63k worth of shares. This makes one think the business has some good points.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of Spirit of Texas Bancshares shares, worth about US$39m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Spirit of Texas Bancshares Insiders?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Spirit of Texas Bancshares insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Spirit of Texas Bancshares, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org. 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.