Insiders Of TETRA Technologies Reap Rewards After Their Investment Jumps Another US$670k

TETRA Technologies, Inc. (NYSE:TTI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 27% resulting in a US$199m addition to the company’s market value. Put another way, the original US$504.1k acquisition is now worth US$1.17m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At TETRA Technologies

Over the last year, we can see that the biggest insider purchase was by Treasurer & VP of Investor Relations Kurt Hallead for US$246k worth of shares, at about US$3.39 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.04. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While TETRA Technologies insiders bought shares during the last year, they didn't sell. They paid about US$3.02 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 TETRA Technologies

TETRA Technologies is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of TETRA Technologies

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.1% of TETRA Technologies shares, worth about US$50m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About TETRA Technologies Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in TETRA Technologies and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that TETRA Technologies has 2 warning signs and it would be unwise to ignore these.

But note: TETRA Technologies 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.