Stock Analysis

Don't Ignore The Insider Selling In Tandem Diabetes Care

NasdaqGM:TNDM
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Some Tandem Diabetes Care, Inc. (NASDAQ:TNDM) shareholders may be a little concerned to see that the Chair Emeritus, Kim Blickenstaff, recently sold a substantial US$1.2m worth of stock at a price of US$31.04 per share. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

See our latest analysis for Tandem Diabetes Care

The Last 12 Months Of Insider Transactions At Tandem Diabetes Care

Notably, that recent sale by Kim Blickenstaff is the biggest insider sale of Tandem Diabetes Care shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$30.81. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 5.53k shares worth US$107k. On the other hand they divested 45.00k shares, for US$1.5m. In total, Tandem Diabetes Care insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:TNDM Insider Trading Volume November 25th 2024

I will like Tandem Diabetes Care better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

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. Tandem Diabetes Care insiders own about US$17m worth of shares. That equates to 0.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Tandem Diabetes Care Tell Us?

Unfortunately, there has been more insider selling of Tandem Diabetes Care stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tandem Diabetes Care. Every company has risks, and we've spotted 2 warning signs for Tandem Diabetes Care you should know about.

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.