This Insider Has Just Sold Shares In Telephone and Data Systems, Inc. (NYSE:TDS)

By
Simply Wall St
Published
November 24, 2021
NYSE:TDS
Source: Shutterstock

We'd be surprised if Telephone and Data Systems, Inc. (NYSE:TDS) shareholders haven't noticed that the Non-Independent Director, Prudence Carlson, recently sold US$176k worth of stock at US$19.51 per share. On the bright side, that sale was only 0.5% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Telephone and Data Systems

The Last 12 Months Of Insider Transactions At Telephone and Data Systems

In the last twelve months, the biggest single sale by an insider was when the Senior Vice President of Strategy & Corporate Development, Joseph Hanley, sold US$317k worth of shares at a price of US$22.87 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$19.50). So it may not tell us anything about how insiders feel about the current share price.

In total, Telephone and Data Systems insiders sold more than they bought over 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!

insider-trading-volume
NYSE:TDS Insider Trading Volume November 24th 2021

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

Insider Ownership of Telephone and Data Systems

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. It's great to see that Telephone and Data Systems insiders own 13% of the company, worth about US$280m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Telephone and Data Systems Tell Us?

An insider sold Telephone and Data Systems shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. 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. You'd be interested to know, that we found 3 warning signs for Telephone and Data Systems and we suggest you have a look.

But note: Telephone and Data Systems 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.