Anyone interested in Tactile Systems Technology, Inc. (NASDAQ:TCMD) should probably be aware that the CEO, President & Director, Sheri Dodd, recently divested US$323k worth of shares in the company, at an average price of US$29.44 each. That sale was 11% of their holding, so it does make us raise an eyebrow.

Tactile Systems Technology Insider Transactions Over The Last Year

In fact, the recent sale by CEO, President & Director Sheri Dodd was not their only sale of Tactile Systems Technology shares this year. They previously made an even bigger sale of -US$431k worth of shares at a price of US$28.69 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$23.71). So it is hard to draw any strong conclusion from it.

In the last year Tactile Systems Technology insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Does Tactile Systems Technology Boast High Insider Ownership?

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. Insiders own 2.1% of Tactile Systems Technology shares, worth about US$11m. 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 Tactile Systems Technology Insiders?

An insider sold Tactile Systems Technology shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Tactile Systems Technology makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Tactile Systems Technology has 1 warning sign we think you should be aware of.

But note: Tactile Systems Technology 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.

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.