Srinivasan Gopalan Bought 12% More Shares In T-Mobile US

T-Mobile US, Inc. (NASDAQ:TMUS) shareholders (or potential shareholders) will be happy to see that the CEO, President, Srinivasan Gopalan, recently bought a whopping US$2.0m worth of stock, at a price of US$202. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.

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T-Mobile US Insider Transactions Over The Last Year

The Vice Chairman, G. Sievert, made the biggest insider sale in the last 12 months. That single transaction was for US$9.6m worth of shares at a price of US$239 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$212. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 13.61k shares for US$2.9m. On the other hand they divested 104.02k shares, for US$26m. All up, insiders sold more shares in T-Mobile US than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for T-Mobile US

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Insider Ownership Of T-Mobile US

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that T-Mobile US insiders own 0.4% of the company, worth about US$911m. 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 Do The T-Mobile US Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, T-Mobile US insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for T-Mobile US you should know about.

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.