In the financial world, there are a multitude of indicators investors can use to watch Mr. Market. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace their index-focused peers by a very impressive margin (see just how much).
Just as necessary, optimistic insider trading activity is a second way to analyze the world of equities. Just as you’d expect, there are a number of reasons for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this tactic if investors understand where to look (learn more here).
What’s more, we’re going to study the newest info about Texas Capital Bancshares Inc (NASDAQ:TCBI).
Hedge fund activity in Texas Capital Bancshares Inc (NASDAQ:TCBI)
Heading into Q3, a total of 19 of the hedge funds we track were bullish in this stock, a change of 6% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially.
As industrywide interest increased, particular hedge funds were breaking ground themselves. Daruma Asset Management, managed by Mariko Gordon, initiated the most outsized position in Texas Capital Bancshares Inc (NASDAQ:TCBI). Daruma Asset Management had 44.5 million invested in the company at the end of the quarter. Ken Fisher’s Fisher Asset Management also made a $29.9 million investment in the stock during the quarter. The following funds were also among the new TCBI investors: Clint Carlson’s Carlson Capital, Israel Englander’s Millennium Management, and Jim Simons’s Renaissance Technologies.
How have insiders been trading Texas Capital Bancshares Inc (NASDAQ:TCBI)?
Insider buying made by high-level executives is best served when the company in question has seen transactions within the past six months. Over the latest 180-day time period, Texas Capital Bancshares Inc (NASDAQ:TCBI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Texas Capital Bancshares Inc (NASDAQ:TCBI). These stocks are Commerce Bancshares, Inc. (NASDAQ:CBSH), Prosperity Bancshares, Inc. (NYSE:PB), UMB Financial Corporation (NASDAQ:UMBF), International Bancshares Corp (NASDAQ:IBOC), and First Financial Bankshares Inc (NASDAQ:FFIN). This group of stocks belong to the regional – southwest banks industry and their market caps match TCBI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Commerce Bancshares, Inc. (NASDAQ:CBSH) | 12 | 0 | 0 |
| Prosperity Bancshares, Inc. (NYSE:PB) | 10 | 0 | 0 |
| UMB Financial Corporation (NASDAQ:UMBF) | 5 | 0 | 0 |
| International Bancshares Corp (NASDAQ:IBOC) | 6 | 0 | 0 |
| First Financial Bankshares Inc (NASDAQ:FFIN) | 3 | 0 | 0 |
Using the results explained by the previously mentioned research, average investors should always keep one eye on hedge fund and insider trading activity, and Texas Capital Bancshares Inc (NASDAQ:TCBI) shareholders fit into this picture quite nicely.
