Have Insiders Sold Telos Shares Recently?

Some Telos Corporation (NASDAQ:TLS) shareholders may be a little concerned to see that the Independent Director, Fredrick Schaufeld, recently sold a substantial US$1.4m worth of stock at a price of US$5.83 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

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Telos Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Fredrick Schaufeld was not the only time they sold Telos shares this year. Earlier in the year, they fetched US$6.79 per share in a -US$1.7m sale. 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$5.78. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Telos didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Telos

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 15% of Telos shares, worth about US$65m. 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 Telos Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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 Telos. You'd be interested to know, that we found 2 warning signs for Telos and we suggest you have a look.

But note: Telos may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.