We wouldn’t blame Tetra Tech, Inc. (NASDAQ: TTEK) shareholders if they were a little worried that Roger Argus, the senior vice president, recently made around US $ 746,000 by selling shares at an average price of US $ 189. This reduced their participation by a very large 66%, which undoubtedly implies a strong desire to reallocate capital.
See our latest review for Tetra Tech
The last 12 months of insider trading at Tetra Tech
Chief Executive Officer Dan Batrack had the biggest insider selling in the past 12 months. This single transaction involved $ 6.1 million of shares at a price of $ 122 each. So it’s clear that an insider wanted to take money off the table, even below the current price of US $ 184. When an insider sells below the current price, it suggests that he or she considered that lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. While insider selling is not a positive sign, we cannot be sure that this means that insiders think stocks are fully valued, so it is only a weak sign. We note that the biggest single sale was only 20% of Dan Batrack’s stake.
Tetra Tech insiders haven’t bought any shares in the past year. The chart below shows insider trading (by businesses and individuals) over the past year. If you click on the chart you can see all of the individual trades including the stock price, individual and date!
I will like Tetra Tech better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Insider property of Tetra Tech
Many investors like to check how well a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Tetra Tech insiders own around $ 145 million in shares (or 1.5% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
What might insider trading at Tetra Tech tell us?
Insiders recently sold shares of Tetra Tech, but did not buy any. Looking at the past twelve months, our data shows no insider buying. But it is good to see that Tetra Tech is increasing its profits. Although insiders own many shares of the company (which is good), our analysis of their transactions does not give us confidence in the company. So these insider trading can help us build a stock thesis, but it’s also worth knowing the risks this business faces. During our analysis, we found that Tetra Tech has 2 warning signs and it would be unwise to ignore them.
But beware : Tetra Tech might not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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