Yahoo Finance Read This Before Selling TELUS Corporation (TSE:T) Shares
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in TELUS Corporation (TSE:T).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for TELUS
TELUS Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP of People & Culture and Chief Human Resources Officer Sandy McIntosh bought CA$651k worth of shares at a price of CA$47.60 per share. That means that an insider was happy to buy shares at around the current price of CA$47.80. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid CA$2.1m for 43708 shares. But insiders sold 4450 shares worth CA$217k. Overall, TELUS insiders were net buyers last year. You can see a visual depiction of insider transactions (by 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!
TELUS is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at TELUS Have Sold Stock Recently
Over the last three months, we've seen a bit of insider selling at TELUS. CA$176k worth of shares were sold by insiders. But the good news is that Executive VP & CFO Doug French bought CA$149k worth. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of TELUS shares, worth about CA$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At TELUS Tell Us?
We note that there's been a little more insider selling than buying, recently. But the net divestment is not enough to concern us at all. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think TELUS insiders are doubting the company, and they do own shares. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for TELUS.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
