Have Texas Roadhouse Insiders Been Selling Stock?

Anyone interested in Texas Roadhouse, Inc. (NASDAQ:TXRH) should probably be aware that the Independent Chairman, Gregory Moore, recently divested US$188k worth of shares in the company, at an average price of US$188 each. However, the silver lining is that the sale only reduced their total holding by 2.6%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Texas Roadhouse

The Independent Director, Curtis Warfield, made the biggest insider sale in the last 12 months. That single transaction was for US$749k worth of shares at a price of US$179 each. That means that even when the share price was below the current price of US$194, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 29% of Curtis Warfield's stake.

In the last year Texas Roadhouse insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Texas Roadhouse

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Insider Ownership Of Texas Roadhouse

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Texas Roadhouse insiders own 0.5% of the company, worth about US$65m. 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 Do The Texas Roadhouse Insider Transactions Indicate?

Insiders haven't bought Texas Roadhouse stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Texas Roadhouse is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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 Roadhouse that deserve your attention before buying any shares.

Of course Texas Roadhouse may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.