TWFG Insider Buyers See Boost After Market Cap Rose US$54m

TWFG, Inc. (NASDAQ:TWFG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a US$54m rise in the company's market capitalisation, translating to a gain of 89% on their initial investment. In other words, the original US$3.99m purchase is now worth US$7.53m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for TWFG

TWFG Insider Transactions Over The Last Year

The Chairman Richard Bunch made the biggest insider purchase in the last 12 months. That single transaction was for US$3.2m worth of shares at a price of US$17.00 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$32.22. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

TWFG insiders may have bought shares in the last year, but they didn't sell any. 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!

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

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that TWFG insiders own 1.7% of the company, worth about US$28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At TWFG Tell Us?

It doesn't really mean much that no insider has traded TWFG shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in TWFG and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for TWFG and we suggest you have a look.

Of course TWFG 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.