Treace Medical Concepts, Inc. (NASDAQ:TMCI) shareholders (or potential shareholders) will be happy to see that the CEO, Founder & Director, John Treace, recently bought a whopping US$510k worth of stock, at a price of US$6.00. While that only increased their holding size by 0.7%, it is still a big swing by our standards.

See our latest analysis for Treace Medical Concepts

Notably, that recent purchase by CEO, Founder & Director John Treace was not the only time they bought Treace Medical Concepts shares this year. Earlier in the year, they paid US$4.58 per share in a US$1.4m purchase. We do like to see buying, but this purchase was made at well below the current price of US$6.18. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Treace Medical Concepts insiders bought shares during the last year, they didn't sell. 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!

Treace Medical Concepts is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Treace Medical Concepts insiders own about US$116m worth of shares (which is 30% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

It is good to see recent purchasing. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Treace Medical Concepts. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Treace Medical Concepts. Every company has risks, and we've spotted 2 warning signs for Treace Medical Concepts you should know about.

But note: Treace Medical Concepts 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.