Tandem Diabetes Care Insiders Placed Bullish Bets Worth US$725.5k

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Tandem Diabetes Care, Inc.'s (NASDAQ:TNDM) case, it's fantastic news for shareholders.

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.

Check out our latest analysis for Tandem Diabetes Care

Tandem Diabetes Care Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Dick Allen for US$295k worth of shares, at about US$29.47 per share. So it's clear an insider wanted to buy, at around the current price, which is US$31.86. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Tandem Diabetes Care insiders decided to buy shares at close to current prices.

Tandem Diabetes Care insiders may have bought shares in the last year, but they didn't sell any. They paid about US$24.06 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Tandem Diabetes Care insiders own 0.7% of the company, worth about US$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Tandem Diabetes Care Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Tandem Diabetes Care shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Tandem Diabetes Care insiders are doubting the company, and they do own shares. 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 Tandem Diabetes Care has 2 warning signs and it would be unwise to ignore these.

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.