Some TELUS Corporation (TSE:T) shareholders may be a little concerned to see that the Executive VP & Chief Customer Officer, Tony Geheran, recently sold a substantial CA$950k worth of stock at a price of CA$26.40 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At TELUS
In fact, the recent sale by Tony Geheran was the biggest sale of TELUS shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of CA$26.22. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Happily, we note that in the last year insiders paid CA$1.4m for 61.71k shares. But they sold 62.68k shares for CA$1.6m. All up, insiders sold more shares in TELUS than they bought, over the last year. They sold for an average price of about CA$25.79. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership of TELUS
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$45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About TELUS Insiders?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that TELUS has 5 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
Of course TELUS 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. 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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