Have Terragen Holdings Limited (ASX:TGH) Insiders Been Selling Their Stock?

We note that the Terragen Holdings Limited (ASX:TGH) Independent Non-Executive Director, Ingrid van Dijken, recently sold AU$109k worth of stock for AU$0.34 per share. It wasn't a huge sale, but it did reduce their holding by 25%. This does not instill confidence.

View our latest analysis for Terragen Holdings

Terragen Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Scobie Ward for AU$442k worth of shares, at about AU$0.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.31. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 8.00m shares for AU$1.4m. But insiders sold 320.00k shares worth AU$109k. In the last twelve months there was more buying than selling by Terragen Holdings insiders. Their average price was about AU$0.17. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Terragen Holdings

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. We usually like to see fairly high levels of insider ownership. It appears that Terragen Holdings insiders own 24% of the company, worth about AU$14m. 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 Does This Data Suggest About Terragen Holdings Insiders?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Terragen Holdings. Case in point: We've spotted 4 warning signs for Terragen Holdings you should be aware of.

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.

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