DAVID SACHS Of Terex Shows Optimism, Buys $2.55M In Stock

It was revealed in a recent SEC filing that DAVID SACHS, Director at Terex TEX made a noteworthy insider purchase on December 13,.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, SACHS increased their investment in Terex by purchasing 50,000 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $2,552,250.

The latest market snapshot at Thursday morning reveals Terex shares up by 8.46%, trading at $57.19.

About Terex

Terex is a global manufacturer of aerial work platforms, materials processing equipment, and specialty equipment, such as material handlers, cranes, and concrete mixer trucks. Its current composition is a result of numerous acquisitions over several decades and a recent shift to focus on its two core segments after divesting a handful of underperforming businesses. Terex's remaining segments see heavy demand in nonresidential construction as well as in maintenance, manufacturing, energy, and materials management.

A Deep Dive into Terex's Financials

Revenue Growth: Terex's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 15.14%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.67%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Terex's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.77.

Debt Management: Terex's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.53.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 7.51 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.7 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Terex's EV/EBITDA ratio at 5.79 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Transaction Codes To Focus On

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

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

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