Yahoo Finance Insiders who bought this year lost US$8.2k as Terminix Global Holdings, Inc. (NYSE:TMX) sheds US$188m in value
Insiders who bought US$274k worth of Terminix Global Holdings, Inc.'s (NYSE:TMX) stock at an average buy price of US$41.78 over the last year may be disappointed by the recent 3.6% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$266k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Terminix Global Holdings
The Last 12 Months Of Insider Transactions At Terminix Global Holdings
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Brett Ponton bought US$249k worth of shares at a price of US$41.66 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$40.53). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$274k for 6.57k shares. On the other hand they divested 4.10k shares, for US$198k. Overall, Terminix Global Holdings insiders were net buyers during the last year. 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!
Terminix Global Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Terminix Global Holdings Insiders Bought Stock Recently
It's good to see that Terminix Global Holdings insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$274k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of Terminix Global Holdings shares, worth about US$9.5m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Terminix Global Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Terminix Global Holdings stock. 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. While conducting our analysis, we found that Terminix Global Holdings has 2 warning signs and it would be unwise to ignore them.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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.
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