Independent Director of Terex Andra Rush Buys 9.1% More Shares

Even if it's not a huge purchase, we think it was good to see that Andra Rush, the Independent Director of Terex Corporation (NYSE:TEX) recently shelled out US$99k to buy stock, at US$46.59 per share. However, it only increased their shares held by 9.1%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Terex

Over the last year, we can see that the biggest insider sale was by the President of Terex Materials Processing, Kieran Hegarty, for US$1.1m worth of shares, at about US$58.43 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$46.07). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$2.7m for 53.55k shares. But they sold 38.27k shares for US$2.0m. In the last twelve months there was more buying than selling by Terex insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Terex

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Terex

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Terex insiders own 2.5% of the company, worth about US$76m. 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 Terex Insiders?

The insider sales have outweighed the insider buying, at Terex, in the last three months. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Terex (1 is potentially serious!) that we believe deserve your full attention.

But note: Terex may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.