Telecom Stocks Insiders Are Bullish About

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Includes: FTR, IQNT, IRDM, NIHD, S, SHEN, SPOK, WIN
by: Insider Monkey

We track corporate insiders because we think they have an edge over ordinary investors. They understand their companies and their industries much better than other investors and they sometimes have material non-public information. It is illegal to trade on such information, but insiders do not always have to break the law to benefit from the information. When they know bad or good news is going to be released to the public, they can postpone their purchases or sells, which is legal. Therefore, we have been encouraging investors to focus on the investments of insiders.

In this article we will focus on the telecom stocks insiders are bullish about. All companies have at least $1 billion market cap and were purchased by at least one insider during the past three months. The market data is sourced from Finviz and the sector classification is from Fidelity.

Ticker

Company

Insiders

S

Sprint Nextel Corp.

1

WIN

Windstream Corporation

1

FTR

Frontier Communications Corporation

1

NIHD

NII Holdings Inc.

1

CLWR

Clearwire Corporation

1

Click to enlarge

Sprint Nextel Corp. (NYSE:S): Sprint provides wireless and wireline communications products and services. S was bought by one insider in the past three months. On November 9, Daniel Hesse purchased 100,000 shares at $2.8158. Now the stock is trading at $2.22. It has a market cap of $6.7B. David Einhorn’s Greenlight Capital had $200 million-plus invested in S at the end of September.

Windstream Corporation (NASDAQ:WIN): Windstream is specialized in complex data, high-speed Internet access, and voice and transport services. WIN was bought by one insider in the past three months. Dennis Foster continuously bought the stock in November. Foster purchased 19,800 shares in total in November at prices ranging from $11.7208 to $11.7699. Foster also bought 6,000 shares at $11.7368 in late August. Now the stock is trading at $11.53. It has a market cap of $6.0B and a P/E ratio of 22.71. Louis Bacon’s Moore Global Investments reported to own $17 million of the stock at the end of the third quarter.

Frontier Communications Corporation (NYSE:FTR): Frontier provides communication services mainly to rural areas and small and medium-sized towns and cities. FTR was bought by one insider in the past three months. Agnes Mary Wilderotter purchased 48,000 shares in total at around $5.25 per share on November 21. Now the stock is trading at $4.91. It has a market cap of $4.9B and a P/E ratio of 32.8. Jim Simons is bullish about FTR. His Renaissance Technologies initiated a brand new $15 million of FTR during the third quarter.

NII Holdings Inc. (NASDAQ:NIHD): NII provides wireless communication services mainly through operating companies located in Latin American countries. NIHD was bought by one insider in the past three months. Sergio Chaia purchased 670 shares at $20.48 on December 9. A day earlier, Chaia bought 38,100 shares in total at around $21 per share. Now the stock is trading at $19.91. It has a market cap of $3.4B and a P/E ratio of 11.23. Stephen Mandel’s Lone Pine Capital bought $189 million worth of new NIHD over the third quarter.

Clearwire Corporation (CLWR): Clearwire provides 4F wireless broadband services. CLWR was bought by one insider over the past three months. William Blessing bought 10000 shares at $1.7 on October 7. Now the stock is trading at $2.05. It has a market cap of $1.9B. Larry Robbins’ Glenview Capital disclosed to own $35 million worth of CLWR shares at the end of September.

Other telecom stocks insiders are bullish about include Iridium Communications Inc (NASDAQ:IRDM), USA Mobility, Inc (USMO), Neutral Tandem, Inc (NASDAQ:TNDM), and Shenandoah Telecommunications Co (NASDAQ:SHEN). These have less than a billion dollars in market cap. Generally insider purchases are more profitable in smaller companies.

Disclosure: I am long FTR.