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Over the past year, many Texas Pacific Land Corporation (NYSE:TPL) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Texas Pacific Land Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Senior VP, Micheal Dobbs, for US$1.5m worth of shares, at about US$1,278 per share. That means that even when the share price was below the current price of US$1,331, 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 45% of Micheal Dobbs's stake.
Over the last year, we can see that insiders have bought 549.00 shares worth US$643k. But insiders sold 1.99k shares worth US$2.6m. All up, insiders sold more shares in Texas Pacific Land than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Texas Pacific Land
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Texas Pacific Land Insiders Are Selling The Stock
Over the last three months, we've seen notably more insider selling, than insider buying, at Texas Pacific Land. In total, insiders sold US$1.8m worth of shares in that time. On the other hand we note insiders bought US$449k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership Of Texas Pacific Land
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Texas Pacific Land insiders own 0.2% of the company, worth about US$52m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.