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In the last year, multiple insiders have substantially increased their holdings of TXO Partners, L.P. (NYSE:TXO) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
See our latest analysis for TXO Partners
TXO Partners Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when EVP & Director Keith Hutton bought US$18m worth of shares at a price of US$20.00 per share. That means that an insider was happy to buy shares at above the current price of US$16.54. 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. 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 978.00k shares worth US$20m. But they sold 14.34k shares for US$293k. Overall, TXO Partners 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
TXO Partners is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does TXO Partners Boast High 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. We usually like to see fairly high levels of insider ownership. TXO Partners insiders own 24% of the company, currently worth about US$165m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At TXO Partners Tell Us?
The fact that there have been no TXO Partners insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like TXO Partners insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. For example, TXO Partners has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.