Is Insider Buying And Share-Paid Leadership Altering The Investment Case For TELUS (TSX:T)?

• In recent months, TELUS announced that several board members and senior executives, including CEO Darren Entwistle, collectively bought over 357,000 TELUS shares in the open market, while the company repurchased more than 2.20 million shares under its normal course issuer bid.
• An important angle for investors is that Entwistle has been taking his entire salary in TELUS shares since 2024, further aligning leadership incentives with shareholders.
• Next, we’ll examine how this insider buying and compensation alignment could influence TELUS’s existing investment narrative around network and digital growth.

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TELUS Investment Narrative Recap

To own TELUS, you need to believe its heavy spending on fiber, 5G, and digital services can translate into durable cash generation despite competitive and regulatory pressures. The recent insider buying and share repurchases support confidence in the story, but do not materially change the key short term catalyst, which is improved free cash flow from moderating capex, or the biggest risk, which is the combination of high leverage and intense wireless pricing pressure.

The recent CAD 500,000,000 normal course issuer bid authorization, alongside ongoing debt tenders and refinancings, directly ties into that free cash flow and balance sheet narrative. These actions sit against a backdrop of earnings that have recently grown faster than the broader telecom industry, while return on equity and interest coverage remain areas many investors will watch closely.

Yet against these encouraging signals, investors should be aware of the risk that high capital intensity and elevated debt could...

Read the full narrative on TELUS (it's free!)

TELUS’ narrative projects CA$22.7 billion revenue and CA$1.5 billion earnings by 2028.

Uncover how TELUS' forecasts yield a CA$22.21 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community currently see TELUS’s fair value between CA$17 and CA$38.08, reflecting wide variation in expectations. You can weigh those views against the central risk that high capex needs and debt levels may constrain flexibility and influence how the company’s performance evolves.

Explore 10 other fair value estimates on TELUS - why the stock might be worth over 2x more than the current price!

Build Your Own TELUS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TELUS research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free TELUS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TELUS' overall financial health at a glance.

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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.

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