Trade Alert: President of Aerials Of Terex Joshua Gross Has Sold Stock

We'd be surprised if Terex Corporation (NYSE:TEX) shareholders haven't noticed that the President of Aerials, Joshua Gross, recently sold US$220k worth of stock at US$40.75 per share. That sale was 30% of their holding, so it does make us raise an eyebrow.

Our free stock report includes 2 warning signs investors should be aware of before investing in Terex. Read for free now.

Terex Insider Transactions Over The Last Year

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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$46.85). So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$2.8m for 53.64k shares. On the other hand they divested 61.01k shares, for US$3.5m. In total, Terex insiders sold more than they bought over the last year. 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!

See our latest analysis for Terex

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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 Terex insiders own 2.5% of the company, worth about US$73m. 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. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Terex (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

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.

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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.