Don't Ignore The Insider Selling In T-Mobile US

Some T-Mobile US, Inc. (NASDAQ:TMUS) shareholders may be a little concerned to see that the Independent Director, Raul Claure, recently sold a substantial US$25m worth of stock at a price of US$224 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.2%.

See our latest analysis for T-Mobile US

The Last 12 Months Of Insider Transactions At T-Mobile US

Notably, that recent sale by Independent Director Raul Claure was not the only time they sold T-Mobile US shares this year. Earlier in the year, they fetched US$180 per share in a -US$547m sale. That means that even when the share price was below the current price of US$239, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 44% of Raul Claure's holding.

In the last year T-Mobile US insiders didn't buy any company stock. 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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Does T-Mobile US 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. We usually like to see fairly high levels of insider ownership. T-Mobile US insiders own 0.4% of the company, currently worth about US$1.1b 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 T-Mobile US Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, T-Mobile US makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - T-Mobile US has 2 warning signs we think you should be aware of.

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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.