Will Insiders Be Tempted To Buy More TTI At The New 52-Week Low?

In trading on Friday, shares of TETRA Technologies, Inc. (TTI) touched a new 52-week low of $4.90/share. That's a $8.53 share price drop, or -63.51% decline from the 52-week high of $13.43 set back on 04/23/2014. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for TTI that means the stock would have to gain 174.08% to get back to the 52-week high. For a move like that, TETRA Technologies, Inc. would need fundamental strength at the business level.

Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as TTI shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, TTI has seen 2 different instances of insiders buying over the past six months.

START SLIDESHOW:
Ten Bargains You Can Buy Cheaper Than The Insiders Did »

Purchased Insider Title Shares Price/Share Value
12/04/2014 Elijio V. Serrano Sr. Vice President & CFO 46,364 $5.34 $247,583.76
12/05/2014 Kenneth P. Mitchell Director 10,000 $5.67 $56,700.00
12/08/2014 Kenneth P. Mitchell Director 2,000 $5.24 $10,480.00

In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where TTI has traded over the past year, with the 50-day and 200-day moving averages included.

TETRA Technologies, Inc. Moving Averages Chart

Time will tell whether the insider purchases foretell a future rebound for TTI shares, which are presently showing a last trade of $5.13/share, slightly above the new 52-week low.

More from Stocks

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

PayPal Says It's Testing a Venmo Debit Card

PayPal Says It's Testing a Venmo Debit Card

Complying With Europe's New Data Rules Could Be Costly for Facebook, Google

Complying With Europe's New Data Rules Could Be Costly for Facebook, Google

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit

Jim Cramer: Why I am So Bullish on Apple's Services Revenue

Jim Cramer: Why I am So Bullish on Apple's Services Revenue