Yahoo Finance Bullish insiders at Treace Medical Concepts, Inc. (NASDAQ:TMCI) loaded up on US$1.3m of stock earlier this year
Over the last year, a good number of insiders have significantly increased their holdings in Treace Medical Concepts, Inc. (NASDAQ:TMCI). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
View our latest analysis for Treace Medical Concepts
Treace Medical Concepts Insider Transactions Over The Last Year
The CEO, Founder & Director John Treace made the biggest insider purchase in the last 12 months. That single transaction was for US$534k worth of shares at a price of US$18.92 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$24.03. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Treace Medical Concepts insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Treace Medical Concepts is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Treace Medical Concepts Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Treace Medical Concepts. CEO, Founder & Director John Treace spent US$1.2m on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership Of Treace Medical Concepts
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Treace Medical Concepts insiders own 42% of the company, currently worth about US$556m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Treace Medical Concepts Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Treace Medical Concepts insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Treace Medical Concepts has 2 warning signs and it would be unwise to ignore these.
But note: Treace Medical Concepts may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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