Some Treace Medical Concepts, Inc. (NASDAQ:TMCI) shareholders may be a little concerned to see that insider F. Bays recently sold a substantial US$29m worth of stock at a price of US$26.51 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
Check out our latest analysis for Treace Medical Concepts
Treace Medical Concepts Insider Transactions Over The Last Year
Notably, that recent sale by F. Bays is the biggest insider sale of Treace Medical Concepts shares that we’ve seen in the last year. So we know that an insider sold shares at around the present share price of US$25.88. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 90.56k shares worth US$1.8m. On the other hand they divested 1.31m shares, for US$34m. In total, Treace Medical Concepts insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Treace Medical Concepts better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Treace Medical Concepts
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Treace Medical Concepts insiders own 31% of the company, worth about US$500m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Treace Medical Concepts Tell Us?
An insider sold Treace Medical Concepts shares recently, but they didn’t buy any. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. In terms of investment risks, we’ve identified 3 warning signs with Treace Medical Concepts and understanding these should be part of your investment process.
Of course Treace Medical Concepts may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
What are the risks and opportunities for Treace Medical Concepts?
Trading at 1% below our estimate of its fair value
Revenue is forecast to grow 22.6% per year
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
View all Risks and Rewards
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.