We'd be surprised if Teradata Corporation (NYSE:TDC) shareholders haven't noticed that the President, Stephen McMillan, recently sold US$325k worth of stock at US$32.51 per share. On the bright side, that sale was only 2.8% of their holding, so we doubt it's very meaningful, on its own.
Teradata Insider Transactions Over The Last Year
Notably, that recent sale by President Stephen McMillan was not the only time they sold Teradata shares this year. Earlier in the year, they fetched US$30.26 per share in a -US$1.5m sale. That means that an insider was selling shares at slightly below the current price (US$34.18). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 14% of Stephen McMillan's holding.
Teradata insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Teradata
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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 appears that Teradata insiders own 1.4% of the company, worth about US$43m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Teradata Tell Us?
An insider sold Teradata shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Teradata is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Teradata. Our analysis shows 3 warning signs for Teradata (1 is a bit concerning!) and we strongly recommend you look at them before investing.
Of course Teradata may not be the best stock to buy. So you may wish to see this free collection of high quality 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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