Scobie Ward Just Bought 25% More Shares In Terragen Holdings Limited (ASX:TGH)

Those following along with Terragen Holdings Limited (ASX:TGH) will no doubt be intrigued by the recent purchase of shares by insider Scobie Ward, who spent a stonking AU$1.8m on stock at an average price of AU$0.39. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 25%.

Check out our latest analysis for Terragen Holdings

Terragen Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Scobie Ward was the biggest purchase of Terragen Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.39). 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 12.10m shares for AU$3.3m. But insiders sold 320.00k shares worth AU$109k. In total, Terragen Holdings insiders bought more than they sold over the last year. They paid about AU$0.28 on average. We don't deny that it is nice to see insiders buying stock 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership of Terragen Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Terragen Holdings insiders own 25% of the company, worth about AU$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Terragen Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Terragen Holdings we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Terragen Holdings. You'd be interested to know, that we found 2 warning signs for Terragen Holdings and we suggest you have a look.

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, but not derivative transactions.

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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. 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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