David A. Sachs, a director at Terex Corp (NYSE:TEX), recently acquired 10,000 shares of the company's common stock. The purchase, made on November 7, was priced at $56.98 per share, totaling approximately $569,800. This transaction was conducted indirectly through a family LLC, increasing Sachs' indirect holdings to 97,500 shares.
In a separate transaction on the same day, Sachs disposed of 10,000 shares as a gift, with no monetary exchange involved. Following these transactions, Sachs holds 313,954 shares directly, including shares received as a dividend. Additionally, Sachs' wife holds 8,300 shares, though he disclaims beneficial ownership of these shares.
"In other recent news, Terex Corporation reported a year-over-year net sales decrease of 6% to $1.2 billion in its third-quarter earnings for 2024, alongside earnings per share (EPS) of $1.46. Despite this, the company completed the acquisition of ESG, which is projected to contribute an additional $40 million in EBITDA in the fourth quarter. Analysts anticipate that the operational synergies from the ESG acquisition will reach at least $25 million by the end of 2026. Terex maintains a strong backlog of $1.6 billion, with the AWP segment accounting for $1.2 billion. The company's full-year EPS is projected between $5.85 and $6.25, with EBITDA of $635 million to $670 million. While the MP segment has faced challenges due to weak European markets and geopolitical uncertainties, the AWP segment has experienced slight growth. Despite these market challenges, Terex remains cautiously optimistic about its long-term growth, supported by the ESG acquisition and a robust financial strategy. These are recent developments in the company's financial performance and strategic initiatives."
InvestingPro Insights
David A. Sachs' recent acquisition of Terex Corp (NYSE:TEX) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock is currently trading at a low earnings multiple, with a P/E ratio of 8.01, suggesting potential undervaluation. This metric could explain Sachs' decision to increase his stake, possibly viewing it as an attractive entry point.
InvestingPro Tips reveal that Terex has maintained dividend payments for 12 consecutive years and has raised its dividend for 4 consecutive years. This consistent dividend policy may be appealing to long-term investors like Sachs, who might see the company as a stable income-generating asset. The current dividend yield stands at 1.21%, as of the latest data.
Moreover, Terex's financial health appears robust, with liquid assets exceeding short-term obligations and the company operating with a moderate level of debt. These factors contribute to the company's stability and could be reassuring for directors increasing their holdings.
It's worth noting that Terex has shown a significant return over the last week, with a 9.59% price total return. This recent momentum, coupled with a 19.28% return over the past year, may have influenced Sachs' timing for the share purchase.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available for Terex Corp. These tips could provide further context to the director's recent transactions and the company's overall financial position.
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