Over the past year, insiders sold US$687k worth of Telephone and Data Systems, Inc. (NYSE:TDS) stock at an average price of US$19.41 per share allowing them to get the most out of their money. The company's market worth decreased by US$109m over the past week after the stock price dropped 6.1%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Telephone and Data Systems

Telephone and Data Systems Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Kurt Thaus, for US$433k worth of shares, at about US$19.59 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$14.67. So it is hard to draw any strong conclusion from it.

Telephone and Data Systems insiders didn't buy any shares 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!

I will like Telephone and Data Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. It's great to see that Telephone and Data Systems insiders own 11% of the company, worth about US$184m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Telephone and Data Systems Tell Us?

The fact that there have been no Telephone and Data Systems insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Telephone and Data Systems insider transactions don't fill us with confidence. While we like knowing 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. When we did our research, we found 3 warning signs for Telephone and Data Systems (2 don't sit too well with us!) that we believe deserve your full attention.

But note: Telephone and Data Systems may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.