Market cap

As TELA Bio, Inc.’s (NASDAQ:TELA) market cap increased by $15 million, insiders who bought in the last year may consider buying more

Last week, TELA Bio, Inc. (NASDAQ:TELA) insiders who had purchased shares in the previous 12 months were generously rewarded. Shares rose 13% last week, resulting in a $15 million increase in the company’s market value. As a result, their original purchase of US$138,000 worth of stock is now worth US$175,000.

While insider trading isn’t the most important thing when it comes to long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.

See our latest analysis for TELA Bio

TELA Bio insider trades over the past year

Over the past year, we can see that the biggest insider buy was made by CFO and COO Roberto Cuca for US$83,000 worth of stock, at around US$5.50 per stock. We like to see buy, but this buy was made way below the current price of US$9.01. Because the stock was purchased at a lower price, this particular purchase tells us little about what insiders think of the stock’s current price.

Roberto Cuca purchased a total of 19.39k shares during the year at an average price of $7.11. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!

NasdaqGM: TELA Insider Trading Volume, August 9, 2022

TELA Bio isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.

Insider ownership

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. According to our data, insiders own $2.0 million worth of TELA Bio stock, or about 1.5% of the company. I generally like to see higher levels of ownership.

So what does this data suggest about TELA Bio insiders?

Good to see the recent insider buying. We also rely on the longer-term picture of insider trading. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. Although overall insider ownership levels are lower than we would like to see, the trading history implies that TELA Bio insiders are reasonably well aligned and optimistic about the future. In addition to knowing what insider trading is going on, it is useful to identify the risks that TELA Bio faces. For example, TELA Bio has 2 warning signs (and 1 which is a little obnoxious) that we think you should know about.

Sure TELA Bio may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.