Andre Almeida, a director at T-Mobile (TMUS), recently bought 3,808 shares. The buy came to a total cost of $897,528, and is an initial stake for the director.
This is also the first insider buy over the past two years. Company insiders have been sellers of shares, including the sale of large stake from major holder Deutsche Telekom. Major executives including the CEO and CFO have also been scaling out of their position recently.
Overall, T-Mobile insiders still own 59.2% of shares.
The telecom services provider is up 34% over the past year, outperforming the overall stock market. The company executed well in 2024, growing earnings by 43%, even as revenues rose by just 4%. And profit margins expanded to 13%, on the high-end for the telecom industry.
Even with this move higher, shares trade at 20 times forward earnings, a reasonable valuation in the telecom space.
Action to take: Telecom companies require significant upfront capital, keeping competition low. That should allow T-Mobile to continue faring well as one of the established players.
With shares now down about 20% from their 52-week highs, the stock could be well positioned to trend higher in the months ahead. At current prices, shares also pay a 1.6% dividend.
For traders, the May $230 calls, last trading for about $5.25, could see mid-to-high double-digit returns on a bounce higher in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.