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Highlights
- Mike Sievert, T-Mobile CEO, sold $6.5 million worth of T-Mobile shares.
- Speculation arises due to T-Mobile's unusual staffing actions and upcoming announcements.
- The stock sale was pre-planned and not necessarily linked to internal news.
T-Mobile CEO Mike Sievert recently sold $6.5 million worth of his T-Mobile shares, prompting speculation about the timing and potential implications for customers.
According to Investing.com, the sale took place on May 13th and 14th and was conducted under a pre-arranged Rule 10b5-1 trading plan that he set in November 2023.
This plan allows corporate insiders to sell shares at predetermined times, reducing the risk of insider trading accusations.
The timing of Sievert's sale coincides with T-Mobile's unusual activities, including increased staffing at call centers and stores. These actions have led to rumors of an upcoming, potentially unpopular announcement, such as a price hike for legacy postpaid plans.
Read more: T-Mobile increases customers and prices
However, it's essential to note that Sievert's sale only accounted for under 10% of his holdings, indicating he still has a significant investment in the company's future.
My take: Is timing everything?
I understand why T-Mobile customers might feel uneasy about these developments. Some questions have also piqued my interest.
Corporate executives selling shares can sometimes signal internal issues, but in this case, the sales were part of a pre-planned strategy.
It's important to note that although the sale was predetermined (by him, mind you), the announcement of price hikes was not necessarily under the same constraints.
Sievert has been hinting at price hikes from the "un-carrier" for months now, especially after AT&T and Verizon made similar rate increases.
Read more: Verizon raises rates for older unlimited plan - Grandfather 'out'?
So, my question is, although the stock sale was scheduled, did he hold off on announcing price hikes until after the sale was completed?
T-Mobile started rolling out rate hike announcements on May 22 for certain legacy plan customers who will be affected.
The $2-$5 per month increase will be on the June or July bill of those customers.
If you fall into this category and are looking at your options, I highly recommend you review your plans.
Take into account what plan migration T-Mobile is offering you, but also consider alternatives to ensure you are getting the best value for your money.
Read more: T-Mobile MVNOs - Best carriers on the T-Mobile network
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