Anyone interested in Telephone and Data Systems, Inc. (NYSE:TDS) should probably be aware that the Senior Vice President of Technology Services, Kurt Thaus, recently divested US$433k worth of shares in the company, at an average price of US$19.58 each. In particular, we note that the sale equated to a 66% reduction in their position size, which doesn't exactly instill confidence.
Telephone and Data Systems Insider Transactions Over The Last Year
Notably, that recent sale by Kurt Thaus is the biggest insider sale of Telephone and Data Systems shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$19.34. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In total, Telephone and Data Systems insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Telephone and Data Systems Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Telephone and Data Systems insiders own 12% of the company, worth about US$277m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Telephone and Data Systems Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. While conducting our analysis, we found that Telephone and Data Systems has 3 warning signs and it would be unwise to ignore these.
Of course Telephone and Data Systems 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, but not derivative transactions.
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