Business • Markets • Tech

Director At Terex Buys $269K of Stock

2 weeks ago

DAVID SACHS, Director at Terex TEX, reported an insider buy on May 19, according to a new SEC filing.

What Happened: SACHS’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 5,745 shares of Terex. The total transaction value is $269,957.

The latest market snapshot at Monday morning reveals Terex shares down by 0.52%, trading at $47.76.

Delving into Terex’s Background

Terex Corp is a manufacturer of materials processing machinery, waste and recycling solutions, mobile elevating work platforms (MEWPs), and equipment for the electric utility industry. The company designs builds, and supports products used in maintenance, manufacturing, energy, waste and recycling, minerals and materials management, construction, and the entertainment industry. The products are manufactured in North America, Europe, and Asia Pacific and sold all over the world. The company reports business in the following segments: (i) Materials Processing, (ii) Aerial Work Platforms, and (iii) Environmental Solutions Group.

Financial Insights: Terex

Revenue Growth: Terex’s revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -4.88%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Profitability Metrics: Unlocking Value

  • Gross Margin: The company issues a cost efficiency warning with a low gross margin of 18.71%, indicating potential difficulties in maintaining profitability compared to its peers.

  • Earnings per Share (EPS): Terex’s EPS reflects a decline, falling below the industry average with a current EPS of 0.32.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.4, caution is advised due to increased financial risk.

Valuation Analysis:

  • Price to Earnings (P/E) Ratio: Terex’s P/E ratio of 13.08 is below the industry average, suggesting the stock may be undervalued.

  • Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.64, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Terex’s EV/EBITDA ratio at 10.46 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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Exploring the Significance of Insider Trading

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Terex’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.