Independent Director Walter Carter Sold A Bunch Of Shares In TeraWulf
We wouldn't blame TeraWulf Inc. (NASDAQ:WULF) shareholders if they were a little worried about the fact that Walter Carter, the Independent Director recently netted about US$2.0m selling shares at an average price of US$15.14. That's a big disposal, and it decreased their holding size by 36%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At TeraWulf
The Chief Financial Officer, Patrick Fleury, made the biggest insider sale in the last 12 months. That single transaction was for US$9.7m worth of shares at a price of US$16.14 each. So we know that an insider sold shares at around the present share price of US$14.82. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year we saw more insider selling of TeraWulf shares, than buying. The sellers received a price of around US$19.09, on average. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$14.82). The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for TeraWulf
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Insider Ownership Of TeraWulf
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. TeraWulf insiders own about US$925m worth of shares (which is 13% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The TeraWulf Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at TeraWulf, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 4 warning signs for TeraWulf (1 can't be ignored) you should be aware of.
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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.