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Quite a few insiders have dramatically grown their holdings in Treace Medical Concepts, Inc. (NASDAQ:TMCI) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out 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$1.4m worth of shares at a price of US$4.58 each. Even though the purchase was made at a significantly lower price than the recent price (US$10.25), we still think insider buying is a positive. 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.
In the last twelve months Treace Medical Concepts insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Treace Medical Concepts
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Treace Medical Concepts insiders own about US$156m worth of shares (which is 24% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Treace Medical Concepts Insider Transactions Indicate?
The fact that there have been no Treace Medical Concepts insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Treace Medical Concepts insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Treace Medical Concepts and understanding this should be part of your investment process.