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We'd be surprised if Terex Corporation (NYSE:TEX) shareholders haven't noticed that an insider, Stoyan Filipov, recently sold US$325k worth of stock at US$28.09 per share. The eyebrow raising move amounted to a reduction of 10% in their holding.
The Last 12 Months Of Insider Transactions At Terex
Over the last year, we can see that the biggest insider sale was by the President of Terex Aerial Work Platforms, Matthew Fearon, for US$734k worth of shares, at about US$28.24 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$28.84. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 21% of Matthew Fearon's holding.
Happily, we note that in the last year insiders paid US$276k for 9608 shares. But they sold 53769 for US$1.6m. Over the last year we saw more insider selling of Terex shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Terex
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.3% of Terex shares, worth about US$89m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Terex Insider Transactions Indicate?
The stark truth for Terex is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.