Yahoo Finance With T-Mobile US, Inc.'s (NASDAQ:TMUS)) price down 4.2% this week, insiders might find some solace having sold US$4.6m worth of shares earlier this year.
By selling US$4.6m worth of T-Mobile US, Inc. (NASDAQ:TMUS) stock at an average sell price of US$145 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$7.5b over the past week after the stock price dropped 4.2%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for T-Mobile US
The Last 12 Months Of Insider Transactions At T-Mobile US
The Chief Marketing Officer, Michael Katz, made the biggest insider sale in the last 12 months. That single transaction was for US$3.2m worth of shares at a price of US$145 each. So what is clear is that an insider saw fit to sell at around the current price of US$135. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
T-Mobile US insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
T-Mobile US Insiders Are Selling The Stock
The last three months saw significant insider selling at T-Mobile US. Specifically, insiders ditched US$4.6m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does T-Mobile US Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. T-Mobile US insiders own 0.7% of the company, currently worth about US$1.1b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About T-Mobile US Insiders?
Insiders sold T-Mobile US shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. You'd be interested to know, that we found 4 warning signs for T-Mobile US and we suggest you have a look.
Of course T-Mobile US may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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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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