In a recent SEC filing, it was revealed that SANDRA OCONNOR, Director at Terex TEX, made a noteworthy insider purchase on May 19,.
What Happened: OCONNOR’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.
Discovering Terex: A Closer Look
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.
Terex’s Economic Impact: An Analysis
Negative Revenue Trend: Examining Terex’s financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -4.88% in revenue growth, reflecting a decrease in 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.
Key Insights into Profitability Metrics:
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Gross Margin: The company faces challenges with a low gross margin of 18.71%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Terex exhibits below-average bottom-line performance with a current EPS of 0.32.
Debt Management: Terex’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.4. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Valuation Overview:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 13.08 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.64, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 10.46 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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Why Insider Activity Matters in Finance
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Transaction Codes To Focus On
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Terex’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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