Tandem Diabetes Care Insiders Sell US$1.5m Of Stock, Possibly Signalling Caution

In the last year, many Tandem Diabetes Care, Inc. (NASDAQ:TNDM) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

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.

The Last 12 Months Of Insider Transactions At Tandem Diabetes Care

In the last twelve months, the biggest single sale by an insider was when the insider, Kim Blickenstaff, sold US$1.2m worth of shares at a price of US$31.38 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$19.66. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 11.07k shares for US$203k. On the other hand they divested 45.00k shares, for US$1.5m. All up, insiders sold more shares in Tandem Diabetes Care than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Tandem Diabetes Care

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Insiders At Tandem Diabetes Care Have Bought Stock Recently

It's good to see that Tandem Diabetes Care insiders have made notable investments in the company's shares. Executive VP & COO Jean-Claude Kyrillos spent US$191k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Does Tandem Diabetes Care Boast High 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. It appears that Tandem Diabetes Care insiders own 0.9% of the company, worth about US$12m. 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 Does This Data Suggest About Tandem Diabetes Care Insiders?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Tandem Diabetes Care insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tandem Diabetes Care. You'd be interested to know, that we found 2 warning signs for Tandem Diabetes Care and we suggest you have a look.

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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.