Notable Texas Pacific Land Insider Trades $131.79 Thousand In Company Stock

Murray Stahl, Director at Texas Pacific Land TPL, made a large buy and sell of company shares on September 1, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Murray Stahl purchased 64 Texas Pacific Land shares at prices ranging from $1,355 to $1,360 per share for a total of $86,921 on September 1. They then sold their shares on the same day in the open market. They sold at a price of $1,360 to raise a total of $44,871 from the stock sale.

Following the transaction, STAHL still owns 102,596 shares of Texas Pacific Land worth $136,833,075.

Texas Pacific Land shares are trading down 1.56% at $1333.71 at the time of this writing on Thursday afternoon.

Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

To get more information on previous transactions, check out the insider's net worth page.