Those following along with Telos Corporation (NASDAQ:TLS) will no doubt be intrigued by the recent purchase of shares by John Wood, Chairman of the company, who spent a stonking US$730k on stock at an average price of US$3.65. While that only increased their holding size by 4.7%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Telos
Notably, that recent purchase by Chairman John Wood was not the only time they bought Telos shares this year. They previously made an even bigger purchase of US$1.8m worth of shares at a price of US$18.14 per share. That means that an insider was happy to buy shares at above the current price of US$4.47. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. John Wood was the only individual insider to buy shares in the last twelve months.
John Wood bought 425.00k shares over the last 12 months at an average price of US$8.04. 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!
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).
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Telos insiders own 11% of the company, worth about US$33m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Telos Insiders?
It’s certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Telos shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Telos. Be aware that Telos is showing 3 warning signs in our investment analysis, and 2 of those are a bit unpleasant…
Of course Telos may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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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.
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