If a CEO is buying company stock, it’s often worth taking a closer look. CEOs tend to be way ahead of analysts and portfolio managers when it comes to the performance of their companies and their stock purchases can provide valuable trading signals.

In this report, we are going to highlight a large CEO purchase at TELUS Corp (T:CN). TELUS is a Canadian company that offers a range of telecommunications, health, safety, and security products and services. It is the parent company of TELUS Communications, TELUS Mobility, TELUS Health, and TELUS International. It is listed on the Toronto Stock Exchange and the New York Stock Exchange and currently has a market cap of approximately CAD $39.06 billion.

Insider Buying at TELUS

Our data shows that on March 13, TELUS’ President / CEO Darren Entwistle purchased 150,400 company shares at a price of CAD $26.58 per share. This trade cost the insider around CAD $4 million (approx. USD $2.92 million) and increased his holding to 551,998 shares.

Company Experience

Mr. Entwistle has considerable company and industry experience. He joined TELUS in 2000 as President and CEO and is the longest-serving CEO in the global telecommunications industry. Under his leadership, TELUS has evolved from a regional telephone company serving Western Canada into a national communications and information technology leader. Given his experience, he is likely to have a good understanding of his company’s prospects.

What stands out here is the size of his purchase. The fact that Mr. Entwistle has invested around CAD $4 million in company stock (and increased the size of his holding by 37%) suggests that he is very confident about the future.

Strong Q4 Results

TELUS recently posted a strong set of Q4 2022 results.

For the period, the group generated consolidated operating revenue, adjusted EBITDA, and free cash flow growth of 8.6%, 9.5%, and 64%, respectively. Meanwhile, it registered its strongest fourth quarter on record in terms of mobile and fixed customer growth, driven by strong demand for its products.

Looking ahead, the company said that it is targeting operating revenue growth of 11-14% this year along with adjusted EBITDA growth of 9.5-11%. It expects free cash flow of approximately $2.0 billion, which should support its balance sheet and help it grow its dividend.

“The TELUS team’s ability to consistently drive profitable growth over the long-term, on the back of our differentiated asset base, best-in-class customer experience, world-leading networks and our unique growth businesses, provides us with confidence in the robust outlook for our business and delivering on the annual targets for 2023,” commented Mr. Entwistle.

In light of these results, we see the insider buying here as a bullish signal.

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