Disclosed in the latest SEC filing, a significant insider purchase on May 19, involves Oluseun Salami, Board Member at Terex TEX.
What Happened: Salami’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.
During Monday’s morning session, Terex shares down by 0.52%, currently priced at $47.76.
Unveiling the Story Behind Terex
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: Delving into Financials
Decline in Revenue: Over the 3 months period, Terex faced challenges, resulting in a decline of approximately -4.88% in revenue growth as of 31 March, 2025. This signifies a reduction in the company’s top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Navigating Financial Profits:
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Gross Margin: With a low gross margin of 18.71%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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Earnings per Share (EPS): Terex’s EPS is below the industry average. The company faced challenges with a current EPS of 0.32. This suggests a potential decline in earnings.
Debt Management: Terex’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.4, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Understanding Financial Valuation:
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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 P/S ratio of 0.64 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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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 Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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Why Insider Transactions Are Important
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Deciphering Transaction Codes in Insider Filings
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.
