Executives at Deutsche Telekom AG (ETR:DTEGn) have sold a significant amount of T-Mobile US, Inc. (NASDAQ:TMUS) stock, with transactions totaling over $92 million. The sales occurred between May 10 and May 14, according to recent filings with the Securities and Exchange Commission.
The transactions, which were carried out under a pre-arranged 10b5-1 trading plan adopted on November 29, 2023, involved the sale of T-Mobile US common stock at prices ranging from $162.1744 to $164.6561 per share. The 10b5-1 trading plan allows company insiders to set up a predetermined schedule for buying or selling stocks to avoid accusations of insider trading.
The sales were executed in multiple transactions, with prices per share varying within the stated range. The largest single sale reported was for 168,675 shares at an average price of $164.177. This was closely followed by another significant transaction of 170,242 shares sold at an average price of $163.0895. Other transactions included sales of 20,995 shares at $164.6561 and 40,179 shares at $164.0709, among others.
Following these sales, the executives still hold a substantial number of shares in the company. The filings indicate that the shares owned following the transactions ranged from approximately 675 million to 676 million shares.
The executives involved in the stock sales are associated with various Deutsche Telekom (OTC:DTEGY) entities, all of which are reported to be directors and more than ten percent owners of T-Mobile US. These entities include T-Mobile Global Holding GmbH, T-Mobile Global Zwischenholding GmbH, and Deutsche Telekom Holding B.V., all subsidiaries of Deutsche Telekom AG.
Investors often monitor insider sales for signals about executives' confidence in the company's future performance. However, the use of a 10b5-1 trading plan can indicate that the sales were planned in advance and not necessarily a direct response to market conditions or company performance.
T-Mobile US, Inc. and Deutsche Telekom AG have not publicly commented on the reasons behind the stock sales at the time of reporting.
InvestingPro Insights
As T-Mobile US, Inc. (NASDAQ:TMUS) navigates the market with recent insider stock sales, investors looking for deeper insights can turn to InvestingPro for a comprehensive analysis. According to InvestingPro data, T-Mobile is currently trading at a P/E ratio of 21.78, with an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at 19.56. This positions the company at an attractive valuation relative to near-term earnings growth, as highlighted by one of the InvestingPro Tips.
Further reinforcing the company's financial health, T-Mobile boasts a robust Gross Profit Margin of 63.15% for the last twelve months as of Q1 2024. Additionally, the company's management has demonstrated confidence in its stock by aggressively buying back shares, a move often interpreted as a positive signal about the company's future prospects.
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