Trade Alert: Lead Independent Director Of T-Mobile US Teresa Taylor Has Sold Stock

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$162. Probably the most concerning element of the whole transaction is that the disposal amounted to 52% of their entire holding.

Check out our latest analysis for T-Mobile US

T-Mobile US Insider Transactions Over The Last Year

The Independent Director, Raul Claure, made the biggest insider sale in the last 12 months. That single transaction was for US$25m worth of shares at a price of US$130 each. That means that an insider was selling shares at slightly below the current price (US$162). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 2.7% of Raul Claure's holding.

Insiders in T-Mobile US didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like T-Mobile US better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. T-Mobile US insiders own about US$1.4b worth of shares (which is 0.7% of the company). 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. And even if we look at the last year, we didn't see any purchases. But since T-Mobile US is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for T-Mobile US you should know about.

Of course T-Mobile US may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.