We wouldn't blame Teradata Corporation (NYSE:TDC) shareholders if they were a little worried about the fact that Michael Hutchinson, the Chief Customer Officer recently netted about US$610k selling shares at an average price of US$32.96. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.
Teradata Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Todd Cione, for US$1.9m worth of shares, at about US$45.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$33.02. So it may not shed much light on insider confidence at current levels.
In the last year Teradata insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Teradata
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Teradata insiders own about US$28m worth of shares. That equates to 0.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Teradata Insider Transactions Indicate?
Insiders sold Teradata shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Teradata is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Teradata. Case in point: We've spotted 2 warning signs for Teradata you should be aware of.
But note: Teradata may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.