Two Texas Industries Insiders Think Cement Demand Will Go Up

Page 1 of 2

Two Board members at Texas Industries, Inc. (NYSE:TXI) have indirectly purchased shares of the company’s stock since the beginning of February. A trust connected to Sean Foley has bought 1,000 shares, at prices of about $56.50, while an LLC related to Bernard Lanigan Jr. added 10,000 shares at similar prices. Economic theory states that investors should diversify their wealth in order to avoid being overly affected by negative company-specific events; a similar logic explains why insiders should not buy their company’s stock unless they are quite confident that the price will rise. This is why it’s not surprising that stocks bought by insiders tend to outperform the market. While the overall effect is not particularly strong, it increases in power when we see multiple insiders buying (learn more about studies on consensus insider purchases). In any case we like to provide a brief overview of stocks that insiders are buying so that investors can decide whether or not they want to review the company further.

Texas Industries, Inc. (NYSE:TXI)

Texas Industries, Inc. is a cement and aggregates company with a market capitalization of $1.6 billion. The demand for cement in particular is dependent on construction, and so buying Texas Industries could be seen as bullish on the general economy, construction in particular, and housing. The stock price has risen 65% in the last year, though many traders are bearish as over 25% of the outstanding shares are held short. In the fiscal quarter ending in November 2012, Texas Industries reported a loss despite a 15% increase in revenue versus a year earlier; analyst consensus is that it will not be profitable in this fiscal year (which ends in May 2013) or the following one.

Interest in smaller-cap stocks such as Texas Industries, Inc. among hedge funds and other notable investors is important because these stocks are more likely to be mispriced than larger-cap, more closely-followed companies. We published a list of the most popular small cap stocks among hedge funds in our August newsletter and these names went on to outperform the S&P 500 by 18 percentage points between September and January (read more about our hedge fund strategies). Texas Industries does not seem to be particularly popular; while Mason Hawkins’ Southeastern Asset Management reported a position of 8.2 million shares at the end of September (see Southeastern’s stock picks), no other investor in our database of 13F filings owned more than $20 million worth of stock at that time. We will have to see if that changed in Q4 2012 when new 13Fs are released in mid February.

See what we think of Texas Industries compared to its peers:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!