Have Insiders Sold Tactile Systems Technology Shares Recently?

Explore Tactile Systems Technology's Fair Values from the Community and select yours

We note that the Tactile Systems Technology, Inc. (NASDAQ:TCMD) CEO, President & Director, Sheri Dodd, recently sold US$96k worth of stock for US$12.36 per share. It wasn't a huge sale, but it did reduce their holding by 15%. This does not instill confidence.

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The Last 12 Months Of Insider Transactions At Tactile Systems Technology

Notably, that recent sale by Sheri Dodd is the biggest insider sale of Tactile Systems Technology shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$12.38. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 15% of Sheri Dodd's stake.

In the last year Tactile Systems Technology insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Tactile Systems Technology

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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. Our data indicates that Tactile Systems Technology insiders own about US$5.8m worth of shares (which is 2.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Tactile Systems Technology Tell Us?

An insider sold Tactile Systems Technology shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. While it's good to be aware of 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. While conducting our analysis, we found that Tactile Systems Technology has 2 warning signs and it would be unwise to ignore these.

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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.