Insiders who sold TETRA Technologies, Inc.'s (NYSE:TTI) earlier year may find some solace in the 12% drop

Despite the fact that TETRA Technologies, Inc.'s (NYSE:TTI) value has dropped 12% in the last week insiders who sold US$810k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$3.59 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for TETRA Technologies

The Last 12 Months Of Insider Transactions At TETRA Technologies

Over the last year, we can see that the biggest insider sale was by the Independent Chairman of the Board & Presiding Director, William Sullivan, for US$714k worth of shares, at about US$3.56 per share. That means that even when the share price was below the current price of US$3.74, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 46% of William Sullivan's holding.

Over the last year, we can see that insiders have bought 45.00k shares worth US$148k. But insiders sold 225.47k shares worth US$810k. In total, TETRA Technologies insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insiders at TETRA Technologies Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at TETRA Technologies. In total, Independent Chairman of the Board & Presiding Director William Sullivan sold US$714k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does TETRA Technologies Boast High Insider Ownership?

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. It appears that TETRA Technologies insiders own 11% of the company, worth about US$52m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At TETRA Technologies Tell Us?

An insider sold TETRA Technologies shares recently, but they didn't buy any. 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're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TETRA Technologies. At Simply Wall St, we found 2 warning signs for TETRA Technologies that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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.