We wouldn't blame Tandem Diabetes Care, Inc. (NASDAQ:TNDM) shareholders if they were a little worried about the fact that Kim Blickenstaff, the Chair Emeritus recently netted about US$1.2m selling shares at an average price of US$31.04. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.
Tandem Diabetes Care Insider Transactions Over The Last Year
In fact, the recent sale by Kim Blickenstaff was the biggest sale of Tandem Diabetes Care shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$30.81. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 5.53k shares worth US$107k. But they sold 45.00k shares for US$1.5m. In total, Tandem Diabetes Care insiders sold more than they bought over 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!
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.
Does Tandem Diabetes Care 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Tandem Diabetes Care insiders own about US$17m worth of shares. That equates to 0.8% of the company. 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?
The stark truth for Tandem Diabetes Care is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. 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.
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.
