Have Insiders Sold Teradata Shares Recently?

Anyone interested in Teradata Corporation (NYSE:TDC) should probably be aware that the Chief Product Officer, Hillary Ashton, recently divested US$412k worth of shares in the company, at an average price of US$27.53 each. That sale was 22% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Teradata

Teradata Insider Transactions Over The Last Year

The President, Stephen McMillan, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$38.22 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$28.51. So it is hard to draw any strong conclusion from it.

In the last year Teradata insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Teradata better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.9% of Teradata shares, worth about US$24m. 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?

Insiders sold Teradata shares recently, but they didn't buy any. 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're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Teradata. At Simply Wall St, we found 2 warning signs for Teradata that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.