Insiders who acquired US$9.6m worth of TeraWulf Inc.'s (NASDAQ:WULF) stock at an average price of US$8.08 in the past 12 months may be dismayed by the recent 11% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$3.6m.
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.
TeraWulf Insider Transactions Over The Last Year
The Co-Founder Paul Prager made the biggest insider purchase in the last 12 months. That single transaction was for US$3.1m worth of shares at a price of US$7.76 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.01). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months TeraWulf insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
TeraWulf Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at TeraWulf. Overall, two insiders shelled out US$8.8m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does TeraWulf Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that TeraWulf insiders own 59% of the company, worth about US$186m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At TeraWulf Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about TeraWulf. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TeraWulf. To that end, you should learn about the 4 warning signs we've spotted with TeraWulf (including 2 which are concerning).
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.
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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.