We wouldn't blame T-Mobile US, Inc. (NASDAQ:TMUS) shareholders if they were a little worried about the fact that Raul Claure, the Independent Director recently netted about US$54m selling shares at an average price of US$197. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.5%.
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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. They previously made an even bigger sale of -US$547m worth of shares at a price of US$180 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$202. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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.
T-Mobile US insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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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. A high insider ownership often makes company leadership more mindful of shareholder interests. T-Mobile US insiders own about US$1.0b worth of shares (which is 0.4% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About T-Mobile US Insiders?
Insiders haven't bought T-Mobile US stock in the last three months, but there was some selling. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing T-Mobile US. While conducting our analysis, we found that T-Mobile US has 2 warning signs and it would be unwise to ignore them.
But note: T-Mobile US 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.
About NasdaqGS:TMUS
T-Mobile US
Provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands.
Solid track record and fair value.