Non-Executive Chairman of TerraCom Mark Lochtenberg Buys 19% More Shares

Investors who take an interest in TerraCom Limited (ASX:TER) should definitely note that the Non-Executive Chairman, Mark Lochtenberg, recently paid AU$0.18 per share to buy AU$353k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 19%.

View our latest analysis for TerraCom

The Last 12 Months Of Insider Transactions At TerraCom

In fact, the recent purchase by Mark Lochtenberg was the biggest purchase of TerraCom shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.18 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for TerraCom share holders is that insiders were buying at near the current price.

In the last twelve months TerraCom insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TerraCom is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does TerraCom Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that TerraCom insiders own about AU$12m worth of shares (which is 8.6% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At TerraCom Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest TerraCom insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that TerraCom is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.