Bullish insiders at TELUS Corporation (TSE:T) loaded up on CA$4.0m of stock earlier this year
Quite a few insiders have dramatically grown their holdings in TELUS Corporation (TSE:T) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for TELUS
TELUS Insider Transactions Over The Last Year
Notably, that recent purchase by Darren Entwistle is the biggest insider purchase of TELUS shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$26.87. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 151.96k shares worth CA$4.0m. On the other hand they divested 18.45k shares, for CA$557k. In total, TELUS insiders bought more than they sold 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
TELUS Insiders Bought Stock Recently
It's good to see that TELUS insiders have made notable investments in the company's shares. We can see that President Darren Entwistle paid CA$4.0m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Does TELUS 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of TELUS shares, worth about CA$49m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About TELUS Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of TELUS we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TELUS. To that end, you should learn about the 3 warning signs we've spotted with TELUS (including 1 which shouldn't be ignored).
Of course TELUS 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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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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