TerraCom Non-Executive Chairman Acquires 17% More Stock

Potential TerraCom Limited (ASX:TER) shareholders may wish to note that the Non-Executive Chairman, Mark Lochtenberg, recently bought AU$348k worth of stock, paying AU$0.23 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 17%.

Check out our latest analysis for TerraCom

The Last 12 Months Of Insider Transactions At TerraCom

Notably, that recent purchase by Mark Lochtenberg is the biggest insider purchase of TerraCom shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$0.27), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of TerraCom

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 7.0% of TerraCom shares, worth about AU$15m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Do The TerraCom Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of TerraCom we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with TerraCom (including 1 which is concerning).

But note: TerraCom may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.