Potential Telos Corporation (NASDAQ:TLS) shareholders may wish to note that the Chairman, John Wood, recently bought US$264k worth of stock, paying US$2.20 for each share. Although the purchase only increased their holding by 2.3%, it is still a solid purchase in our view.
Telos Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman John Wood was not the only time they bought Telos shares this year. They previously made an even bigger purchase of US$906k worth of shares at a price of US$2.31 per share. That means that an insider was happy to buy shares at around the current price of US$2.54. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Telos share holders is that insiders were buying at near the current price.
While Telos insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Telos is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Telos
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Telos shares, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Telos Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Telos insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Telos you should be aware of, and 1 of them is potentially serious.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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