Have Insiders Sold TELUS Corporation (TSE:T) Shares Recently?

Simply Wall St
May 13, 2022
Source: Shutterstock

Anyone interested in TELUS Corporation (TSE:T) should probably be aware that the COO & EVP, Tony Geheran, recently divested CA$192k worth of shares in the company, at an average price of CA$32.02 each. On the bright side, that sale was only 5.5% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for TELUS

The Last 12 Months Of Insider Transactions At TELUS

Over the last year, we can see that the biggest insider sale was by the Executive VP & CFO, Douglas French, for CA$304k worth of shares, at about CA$32.04 per share. So we know that an insider sold shares at around the present share price of CA$30.99. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

All up, insiders sold more shares in TELUS than they bought, 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:T Insider Trading Volume May 13th 2022

I will like TELUS better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does TELUS Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 appears that TELUS insiders own 0.1% of the company, worth about CA$48m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The TELUS Insider Transactions Indicate?

Insiders sold TELUS shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since TELUS is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for TELUS (of which 1 is significant!) you should know about.

But note: TELUS 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, but not derivative transactions.

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