Yahoo Finance Insider Spends US$979k Buying More Shares In Telos
Telos Corporation (NASDAQ:TLS) shareholders (or potential shareholders) will be happy to see that the Independent Director, Fredrick Schaufeld, recently bought a whopping US$979k worth of stock, at a price of US$3.96. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 20%.
See our latest analysis for Telos
Telos Insider Transactions Over The Last Year
In fact, the recent purchase by Fredrick Schaufeld was the biggest purchase of Telos shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$3.96. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Telos insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$3.15. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Telos is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Telos Boast High Insider Ownership?
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 13% of Telos shares, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Telos Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Telos we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Telos. At Simply Wall St, we've found that Telos has 4 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
But note: Telos 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
