Have Tetra Tech, Inc. (NASDAQ:TTEK) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
February 07, 2021
NasdaqGS:TTEK
Source: Shutterstock

We wouldn't blame Tetra Tech, Inc. (NASDAQ:TTEK) shareholders if they were a little worried about the fact that Steven Burdick, the CFO, Executive VP & Treasurer recently netted about US$1.4m selling shares at an average price of US$129. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

Check out our latest analysis for Tetra Tech

Tetra Tech Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Dan Batrack, sold US$6.5m worth of shares at a price of US$93.17 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$134. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 25% of Dan Batrack's stake.

In the last year Tetra Tech insiders didn't buy any company stock. 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
NasdaqGS:TTEK Insider Trading Volume February 8th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Tetra Tech

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. Tetra Tech insiders own about US$123m worth of shares (which is 1.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Tetra Tech Tell Us?

Insiders haven't bought Tetra Tech stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Tetra Tech is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tetra Tech. Case in point: We've spotted 1 warning sign for Tetra Tech you should be aware of.

Of course Tetra Tech may not be the best stock to buy. So you may wish to see this free collection of high quality 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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