May 22, 2024
Investment

Insiders Rewarded With US$2.2m Addition To Investment As Telos Stock Hits US$294m


Insiders who bought Telos Corporation (NASDAQ:TLS) stock in the last 12 months were richly rewarded last week. The company’s market value increased by US$40m as a result of the stock’s 16% gain over the same period. As a result, the stock they originally bought for US$2.51m is now worth US$4.66m.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Telos

The Last 12 Months Of Insider Transactions At Telos

In the last twelve months, the biggest single purchase by an insider was when Chairman John Wood bought US$906k worth of shares at a price of US$2.31 per share. We do like to see buying, but this purchase was made at well below the current price of US$4.22. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.

In the last twelve months Telos insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGM:TLS Insider Trading Volume January 8th 2024

Telos is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Telos Have Bought Stock Recently

Over the last three months, we’ve seen a bit of insider buying at Telos. Independent Director Bradley Jacobs purchased US$16k worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.

Insider Ownership Of Telos

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Telos insiders own 12% of the company, worth about US$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Telos Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Telos and we see no evidence to suggest they are worried about the future. 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. For instance, we’ve identified 4 warning signs for Telos (1 is a bit unpleasant) you should be aware of.

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.

Valuation is complex, but we’re helping make it simple.

Find out whether Telos is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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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