Chief Customer Officer Of Teradata Sold 25% Of Their Shares

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 sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Teradata

The Last 12 Months Of Insider Transactions At Teradata

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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$33.02. So it is hard to draw any strong conclusion from it.

Insiders in Teradata didn't buy any shares in 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Teradata Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. 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 Does This Data Suggest About Teradata Insiders?

Insiders haven't bought Teradata stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Teradata is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Teradata.

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.