28% Of This Telecom Plus Insider's Holdings Were Sold

Viewing insider transactions for Telecom Plus Plc's (LON:TEP ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Telecom Plus

Telecom Plus Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chairman, Charles Wigoder, sold UK£50m worth of shares at a price of UK£24.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (UK£15.64). So it may not tell us anything about how insiders feel about the current share price. Charles Wigoder was the only individual insider to sell 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Telecom Plus 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 Telecom Plus 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. Telecom Plus insiders own 7.2% of the company, currently worth about UK£89m 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 Telecom Plus Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Telecom Plus insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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 found 1 warning sign for Telecom Plus that deserve your attention before buying any shares.

But note: Telecom Plus 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 of direct interests only, but not derivative transactions or indirect interests.

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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.