A top T-Mobile executive places a huge million dollar bet that the digital transition will work out
T-Mobile's Andre Almeida must feel that the carrier's digital transition will pan out.
T-Mobile executive makes bullish bet that the digital transition will pay off. | Image by PhoneArena
Whenever you see an insider buying his company's shares, the transaction conveys more importance than an insider selling his stock. That's because the shares could have been sold for tax purposes, estate planning, or were part of a previously-filed plan to sell stock.
T-Mobile executive spends over $1 million of his own money to buy shares of the carrier
Insider selling doesn't always have predictive value to it. On the other hand, insider buying is often a clear sign that a company executive or director believes that the shares of a company he works for or whose board he sits on will rise. Insiders- a company director, or officer, or someone who owns greater than a 10% stake in the firm, usually have a better feel on what is going on inside a business.
As a result, it would seem that at least one of T-Mobile's U.S. executives is pretty confident in the future of the carrier's digital transition. Andre Almeida, Chief Broadband, Enterprise & Emerging Business at T-Mobile US, purchased over $1 million worth of stock on May 1.
Mike Katz dumps close to $1 million of T-Mobile stock in an open-market transaction
What will be the result of Almeida's investment?
Almeida bought 5,097.44 shares of T-Mobile's U.S. common stock, paying prices ranging from $196.12 to $196.18. The total cost of the stock was $1,000,015. After the transaction, Almeida owns 44,849.602 shares of T-Mobile worth $8.72 million based on Monday's closing price of $194.42.
T-Mobile's Andre Almeida bought a little more than $1 million of T-Mobile shares. | Image by T-Mobile
On the other hand, Mike Katz, the more well-known of the two executives and the carrier's Chief Business and Product Officer, sold T-Mobile shares on May 1. 5,000 shares were sold for a total of $979,050 and the prices he received ranged between $195.74 and $196.115.
Claure's huge sale is still worrisome for T-Mobile bulls
The executive still directly beneficially owns 181,930 shares of T-Mobile worth $35.37 million. According to the required SEC Form 4 that insiders need to file with the SEC when they buy or sell company stock, the sale by Katz was an open market sale and was not a transaction made as part of a Rule 10b5-1 trading plan.
As a result, this would be considered an insider sale that might mean that the executive is not as bullish on T-Mobile as Almeida. If we toss out the sales labeled as part of a 10b5-1 trading plan, we are left with one buy (Almeida) and three sales (Katz, Director Marcelo Claure, and Harvard Business School Dean Srikant Datar).
Claure saved himself over $19 million by selling when he did, before news that Deutsche Telekom was discussing a merger with T-Mobile dropped the latter's shares as low as $182.01 a week ago. The May 1 insider trades seem to cancel each other out although Claure's huge sale of 550,000 T-Mobile shares worth $119.7 million continues to weigh on the data.
Popular stories
Latest News
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: