Have Terex Insiders Been Selling Stock?

Some Terex Corporation (NYSE:TEX) shareholders may be a little concerned to see that the President of Terex Materials Processing, Kieran Hegarty, recently sold a substantial US$1.0m worth of stock at a price of US$56.80 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.3%.

Check out our latest analysis for Terex

The Last 12 Months Of Insider Transactions At Terex

The Consultant, John Garrison, made the biggest insider sale in the last 12 months. That single transaction was for US$2.7m worth of shares at a price of US$59.00 each. So what is clear is that an insider saw fit to sell at around the current price of US$58.57. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 59.73k shares worth US$3.0m. But they sold 105.66k shares for US$6.0m. Over the last year we saw more insider selling of Terex shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Terex Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Terex insiders own 2.6% of the company, currently worth about US$101m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Terex Insiders?

The insider sales have outweighed the insider buying, at Terex, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Terex makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Terex. For instance, we've identified 2 warning signs for Terex (1 is potentially serious) you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.