Insiders Of TELA Bio Reap Rewards After Their Investment Jumps Another US$69k

TELA Bio, Inc. (NASDAQ:TELA) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a US$8.6m rise in the company's market capitalisation, translating to a gain of 13% on their initial investment. Put another way, the original US$519.6k acquisition is now worth US$588.6k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for TELA Bio

TELA Bio Insider Transactions Over The Last Year

In fact, the recent purchase by Antony Koblish was the biggest purchase of TELA Bio shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (US$2.86), 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.

While TELA Bio insiders bought shares during the last year, they didn't sell. They paid about US$2.52 on average. To my mind it is good that insiders have invested their own money 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!

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).

Insiders At TELA Bio Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at TELA Bio. In total, insiders bought US$410k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership Of TELA Bio

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that TELA Bio insiders own about US$5.5m worth of shares (which is 7.8% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About TELA Bio Insiders?

The recent insider purchases are heartening. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that TELA Bio insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that TELA Bio has 2 warning signs and it would be unwise to ignore them.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.