Insiders Of Treace Medical Concepts Are Up 58% On Their US$7.31m Purchase

Insiders who bought Treace Medical Concepts, Inc. (NASDAQ:TMCI) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$49m as a result of the stock's 11% gain over the same period. As a result, the stock they originally bought for US$7.31m is now worth US$11.5m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Treace Medical Concepts

Treace Medical Concepts Insider Transactions Over The Last Year

The CEO, Founder & Director John Treace made the biggest insider purchase in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$4.58 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.87. 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.

Treace Medical Concepts insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Does Treace Medical Concepts Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Treace Medical Concepts insiders own 24% of the company, currently worth about US$112m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Treace Medical Concepts Insiders?

It doesn't really mean much that no insider has traded Treace Medical Concepts shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Treace Medical Concepts insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 2 warning signs for Treace Medical Concepts you should know about.

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 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.