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Those following along with AT&T Inc. (NYSE:T) will no doubt be intrigued by the recent purchase of shares by Pascal Desroches, Senior EVP & CFO of the company, who spent a stonking US$590k on stock at an average price of US$29.52. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.
Check out our latest analysis for AT&T
The Last 12 Months Of Insider Transactions At AT&T
Over the last year, we can see that the biggest insider purchase was by Independent Director Stephen Luczo for US$3.0m worth of shares, at about US$29.69 per share. That means that an insider was happy to buy shares at around the current price of US$30.01. 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. The good news for AT&T share holders is that insiders were buying at near the current price.
AT&T insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. AT&T insiders own about US$200m worth of shares (which is 0.09% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The AT&T Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest AT&T insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AT&T. When we did our research, we found 2 warning signs for AT&T (1 is significant!) that we believe deserve your full attention.