Independent Chairman of the Board Dennis Letham Just Bought 46% More Shares In Tenneco Inc. (NYSE:TEN)

By
Simply Wall St
Published
September 11, 2021
NYSE:TEN
Source: Shutterstock

Investors who take an interest in Tenneco Inc. (NYSE:TEN) should definitely note that the Independent Chairman of the Board, Dennis Letham, recently paid US$13.96 per share to buy US$451k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 46%.

View our latest analysis for Tenneco

Tenneco Insider Transactions Over The Last Year

In fact, the recent purchase by Dennis Letham was the biggest purchase of Tenneco shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$13.11. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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 Tenneco insiders were buying shares, but not selling. Their average price was about US$11.84. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:TEN Insider Trading Volume September 12th 2021

Tenneco is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Tenneco Boast High Insider Ownership?

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 Tenneco insiders own 2.5% of the company, worth about US$27m. 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 Does This Data Suggest About Tenneco Insiders?

It is good to see recent purchasing. 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. When combined with notable insider ownership, these factors suggest Tenneco insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tenneco. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Tenneco.

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.

When trading Tenneco or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.