We'd be surprised if TeraWulf Inc. (NASDAQ:WULF) shareholders haven't noticed that the Chief Accounting Officer & Treasurer, Kenneth Deane, recently sold US$227k worth of stock at US$3.24 per share. The eyebrow raising move amounted to a reduction of 17% in their holding.
The Last 12 Months Of Insider Transactions At TeraWulf
Notably, that recent sale by Kenneth Deane is the biggest insider sale of TeraWulf shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$3.84. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 17%of Kenneth Deane's holding.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does TeraWulf Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that TeraWulf insiders own 19% of the company, worth about US$217m. 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?
An insider sold TeraWulf shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TeraWulf. At Simply Wall St, we've found that TeraWulf has 4 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.