David Sachs, a director at Terex Corp (TRX), recently bought 10,000 shares. The buy increased his stake by 2%, and came to a total cost of $569,800.
This is the first insider buy since August, when another company director bought 2,205 shares, paying $119,864. One company insider has been a seller recently, a division president who sold off nearly 10% of his stake for just over $1 million. Going further back, insiders were more likely to be sellers.
Overall, Details on the Controversy Here
The construction machinery producer is up 8% over the past year, far underperforming the overall stock market. Revenues are down by 6%, and overall earnings are off by over 25%.
However, while the performance has been lackluster, shares trade at about 0.7 times their price-to-sales. And Terex trades for less than 10 times forward earnings.
That suggests that the stock may be a value play here.
Action to take: Value investors may like shares here. Terex has some upside, particularly if they can turn around their flagging earnings. At current prices, shares also pay a 1.2% dividend.
For traders, Terex has been rangebound over the past year, and could see a rally up to the $60 range over the coming months. The January 2025 $60 calls, last trading for about $1.40, could see mid-to-high double-digit returns on a further rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
