One TPG Telecom Limited (ASX:TPG) insider reduced their stake by 17% in the previous year

By
Simply Wall St
Published
February 24, 2022
ASX:TPG
Source: Shutterstock

From what we can see, insiders were net sellers in TPG Telecom Limited's (ASX:TPG ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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.

View our latest analysis for TPG Telecom

TPG Telecom Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, David Teoh, for AU$343m worth of shares, at about AU$7.42 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 AU$5.71. So it may not shed much light on insider confidence at current levels. David Teoh was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid AU$1.8m for 316.00k shares. But insiders sold 54.19m shares worth AU$343m. 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!

insider-trading-volume
ASX:TPG Insider Trading Volume February 24th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

TPG Telecom Insiders Are Selling The Stock

The last quarter saw substantial insider selling of TPG Telecom shares. In total, insider David Teoh dumped AU$343m 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.

Does TPG Telecom Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that TPG Telecom insiders own 15% of the company, worth about AU$1.6b. 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 Do The TPG Telecom Insider Transactions Indicate?

An insider hasn't bought TPG Telecom stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TPG Telecom. At Simply Wall St, we found 3 warning signs for TPG Telecom that deserve your attention before buying any shares.

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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