Whilst it may not be a huge deal, we thought it was good to see that the Spirit of Texas Bancshares, Inc. (NASDAQ:STXB) Independent Director, Robert Beall, recently bought US$51k worth of stock, for US$20.40 per share. That might not be a big purchase but it only increased their holding by 1.6%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Spirit of Texas Bancshares
In fact, the recent purchase by Independent Director Robert Beall was not their only acquisition of Spirit of Texas Bancshares shares this year. Earlier in the year, they paid US$21.50 per share in a US$645k purchase. That means that even when the share price was higher than US$20.15 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Spirit of Texas Bancshares insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.8% of Spirit of Texas Bancshares shares, worth about US$36m. 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 Does This Data Suggest About Spirit of Texas Bancshares Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Spirit of Texas Bancshares shares, given these transactions (along with notable insider ownership of the company). 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.
But note: Spirit of Texas 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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.
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