Those following along with Treace Medical Concepts, Inc. (NASDAQ:TMCI) will no doubt be intrigued by the recent purchase of shares by John Treace, CEO, Founder & Director of the company, who spent a stonking US$524k on stock at an average price of US$8.73. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.5%.
Check out our latest analysis for Treace Medical Concepts
The Last 12 Months Of Insider Transactions At Treace Medical Concepts
Notably, that recent purchase by CEO, Founder & Director John Treace was not the only time they bought Treace Medical Concepts shares this year. Earlier in the year, they paid US$4.58 per share in a US$1.4m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.57. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Treace Medical Concepts insiders may have bought shares in the last year, but they didn't sell any. They paid about US$5.13 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!
Treace Medical Concepts is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. It's great to see that Treace Medical Concepts insiders own 24% of the company, worth about US$130m. 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 Do The Treace Medical Concepts Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Treace Medical Concepts. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Treace Medical Concepts. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Treace Medical Concepts.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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