AT&T Inc. (NYSE:T) shareholders (or potential shareholders) will be happy to see that the Independent Director, Stephen Luczo, recently bought a whopping US$2.5m worth of stock, at a price of US$25.04. Not only is that a big swing, but it increased their holding size by 25%, which is definitely great to see.
AT&T Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Director Stephen Luczo was not their only acquisition of AT&T shares this year. Earlier in the year, they paid US$29.80 per share in a US$3.0m purchase. That means that an insider was happy to buy shares at above the current price of US$24.92. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months AT&T insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of AT&T
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. AT&T insiders own about US$149m worth of shares (which is 0.08% of the company). 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 AT&T Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about AT&T. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AT&T. Every company has risks, and we've spotted 4 warning signs for AT&T you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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.
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