Insider Of Tandem Diabetes Care Trades $733.89 Thousand In Company Stock

James Leal, Insider at Tandem Diabetes Care TNDM, made a large buy and sell of company shares on September 7, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission reports that on September 7, James Leal bought 3,574 Tandem Diabetes Care shares at a price of $82.34 per share, for a total of $294,283. They then sold their shares on the same day in the open market at a price of $123.00 to raise a total of $439,602 from the sale.

Leal still owns a total of 3,751 of Tandem Diabetes Care worth, $470,900.

Tandem Diabetes Care shares were down at $125.54 after Thursday's closing.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Tandem Diabetes Care's Insider Trades.