Two of TXO Partners’ (NYSE:TXO) key executives disclosed an enormous purchase of the company’s shares, worth about $19.6 million. Following the news, TXO stock was down 2.1% on Friday’s extended trading session.
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TXO is an oil and gas production company that develops energy resources in the United States (for a thorough assessment of TXO stock, go to TipRanks’ Stock Analysis page).
Closer Look at Insiders’ Trades
According to the SEC filing, Keith A. Hutton, President of Production and Development at TXO, bought 878,000 shares of the company at $20 per share on June 28. The total value of the transaction is $17.6 million. Moreover, after the latest purchase, the total value of his holdings in TXO stock stands at about $80.64 million.
At the same time, CEO and Chairman of TXO Partners, Bob R. Simpson, purchased 100,000 shares at $20 each, amounting to a total investment of $2 million. As a result, the total value of TXO stock in his portfolio currently stands at $90.7 million.
The purchase of shares by high-ranking executives often signals a positive outlook on the company’s prospects. Monitoring insider trading activities can offer valuable cues for investors, helping them gauge the health and potential performance of a company.
Discover the insider trading tool driving results for investors.
TXO’s Secondary Offering of Common Stock
It is worth mentioning that insiders bought shares as part of the company’s secondary offering, which comprised 6.5 million shares.
TXO plans to use the money, nearly $122.5 million, to fund its acquisition of assets from Eagle Mountain Energy Partners and repay the unpaid debt under TXO’s revolving credit facility.
Is TXO a Good Stock to Buy?
The company’s focus on developing reserves in North America, with assets in the Permian Basin and San Juan Basin, bodes well for long-term growth. Additionally, TXO stock’s high dividend yield of 11.06% is impressive.
In light of these positives, Stifel Nicolaus analyst Derrick Whitfield is bullish on TXO stock. In April, the analyst reiterated a Buy rating and raised the price target to $31 (53.8% upside potential) from $26.
Supporting the bull case, retail investors have also increased their holdings of the stock. In the last 30 days, the number of portfolios (tracked by TipRanks) holding TXO stock increased by 10%.
