Independent Director of Tandem Diabetes Care Dick Allen Buys 33% More Shares \
Potential Tandem Diabetes Care, Inc. (NASDAQ:TNDM) shareholders may wish to note that the Independent Director, Dick Allen, recently bought US$295k worth of stock, paying US$29.47 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 33%.
View our latest analysis for Tandem Diabetes Care
Tandem Diabetes Care Insider Transactions Over The Last Year
Notably, that recent purchase by Dick Allen is the biggest insider purchase of Tandem Diabetes Care shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$28.18). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$484k for 16.02k shares. But they sold 3.10k shares for US$201k. In the last twelve months there was more buying than selling by Tandem Diabetes Care insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Tandem Diabetes Care is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Tandem Diabetes Care
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. 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 appears that Tandem Diabetes Care insiders own 0.6% of the company, worth about US$11m. 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 Tandem Diabetes Care Insiders?
It is good to see recent purchasing. 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. Insiders likely see value in Tandem Diabetes Care shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Tandem Diabetes Care has 1 warning sign we think you should be aware of.
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, but not derivative transactions.
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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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