Yahoo Finance With T-Mobile US, Inc.'s (NASDAQ:TMUS)) price down 4.4% this week, insiders might find some solace having sold US$4.6m worth of shares earlier this year.
Over the past year, insiders sold US$4.6m worth of T-Mobile US, Inc. (NASDAQ:TMUS) stock at an average price of US$145 per share allowing them to get the most out of their money. The company’s market cap plunged by US$7.6b after price dropped by 4.4% last week but insiders were able to limit their loss to an extent.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for T-Mobile US
T-Mobile US Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Marketing Officer, Michael Katz, sold US$3.2m worth of shares at a price of US$145 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$132. So it may not tell us anything about how insiders feel about the current share price.
T-Mobile US insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like T-Mobile US better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At T-Mobile US Have Sold Stock Recently
The last quarter saw substantial insider selling of T-Mobile US shares. Specifically, insiders ditched US$4.6m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of T-Mobile US
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. T-Mobile US insiders own 0.7% of the company, currently worth about US$1.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The T-Mobile US Insider Transactions Indicate?
Insiders sold T-Mobile US shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing T-Mobile US. While conducting our analysis, we found that T-Mobile US has 4 warning signs and it would be unwise to ignore them.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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