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In the last year, multiple insiders have substantially increased their holdings of TELUS Corporation (TSE:T) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
See our latest analysis for TELUS
TELUS Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Victor Dodig for CA$2.1m worth of shares, at about CA$21.38 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$19.45). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
Happily, we note that in the last year insiders paid CA$3.1m for 141.53k shares. On the other hand they divested 98.22k shares, for CA$2.2m. Overall, TELUS insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
TELUS is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At TELUS Have Bought Stock Recently
It's good to see that TELUS insiders have made notable investments in the company's shares. In total, insiders bought CA$2.8m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
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. We usually like to see fairly high levels of insider ownership. TELUS insiders own about CA$35m worth of shares. That equates to 0.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The TELUS Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in TELUS shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of 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. Case in point: We've spotted 4 warning signs for TELUS you should be aware of, and 2 of them make us uncomfortable.