Stock Analysis

Insiders at T-Mobile US, Inc. (NASDAQ:TMUS) sold US$7.3m worth of stock, possibly indicating weakness in the future

NasdaqGS:TMUS
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Over the past year, many T-Mobile US, Inc. (NASDAQ:TMUS) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for T-Mobile US

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

The insider, Matthew Staneff, made the biggest insider sale in the last 12 months. That single transaction was for US$6.3m worth of shares at a price of US$140 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$122. So it may not shed much light on insider confidence at current levels.

In the last year T-Mobile US insiders didn't buy any company stock. 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!

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NasdaqGS:TMUS Insider Trading Volume March 10th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does T-Mobile US Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that T-Mobile US insiders own 0.6% of the company, worth about US$891m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About T-Mobile US Insiders?

The fact that there have been no T-Mobile US insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of T-Mobile US insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with T-Mobile US (including 1 which can't be ignored).

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, but not derivative transactions.

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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.