Noteworthy Insider Activity: ANDRA RUSH Invests $119K In Terex Stock

On August 5, ANDRA RUSH, Board Member at Terex TEX executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: RUSH demonstrated confidence in Terex by purchasing 2,205 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $119,863.

Monitoring the market, Terex's shares up by 1.79% at $55.04 during Tuesday's morning.

Unveiling the Story Behind Terex

Terex is a top 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.

Terex's Financial Performance

Revenue Growth: Terex's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -1.53%. 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.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 23.77%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Terex's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.09.

Debt Management: With a below-average debt-to-equity ratio of 0.36, Terex adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 7.41 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.71, 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): With a below-average EV/EBITDA ratio of 5.74, Terex presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Relevance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.

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