Insiders who purchased Talis Biomedical Corporation (NASDAQ:TLIS) earlier this year lose an additional US$180k as the stock sinks to US$1.15

The recent price decline of 10% in Talis Biomedical Corporation's (NASDAQ:TLIS) stock may have disappointed insiders who bought US$203k worth of shares at an average price of US$10.13 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$23k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Talis Biomedical

Talis Biomedical Insider Transactions Over The Last Year

The Independent Director Randal Scott made the biggest insider purchase in the last 12 months. That single transaction was for US$203k worth of shares at a price of US$10.16 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.15). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Randal Scott was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Talis Biomedical insiders own 9.8% of the company, worth about US$3.0m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Talis Biomedical Insiders?

It doesn't really mean much that no insider has traded Talis Biomedical shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Talis Biomedical insiders are doubting the company. 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. While conducting our analysis, we found that Talis Biomedical has 4 warning signs and it would be unwise to ignore them.

Of course Talis Biomedical 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.

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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.