Lead Independent Director Teresa Taylor Sold A Bunch Of Shares In T-Mobile US

We wouldn't blame T-Mobile US, Inc. (NASDAQ:TMUS) shareholders if they were a little worried about the fact that Teresa Taylor, the Lead Independent Director recently netted about US$1.9m selling shares at an average price of US$236. Probably the most concerning element of the whole transaction is that the disposal amounted to 66% of their entire holding.

See our latest analysis for T-Mobile US

T-Mobile US Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Raul Claure, sold 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$242. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 44% of Raul Claure's holding.

In total, T-Mobile US insiders sold more than they bought 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of T-Mobile US

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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's great to see that T-Mobile US insiders own 0.4% of the company, worth about US$1.0b. 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?

The stark truth for T-Mobile US is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, T-Mobile US makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing T-Mobile US. At Simply Wall St, we found 2 warning signs for T-Mobile US that deserve your attention before buying any shares.

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.