Teradata Corp (NYSE:TDC) President and CEO Stephen McMillan has sold a total of 10,000 shares of company stock, according to a recent SEC filing. The transactions, which took place on May 24, 2024, amounted to over $319,000 in value, with share prices ranging from $31.94 to $32.74.
The sales were executed under a prearranged 10b5-1 trading plan, which McMillan adopted on February 23, 2024. A 10b5-1 trading plan allows company insiders to sell shares over a predetermined period of time, providing a legal defense against insider-trading accusations by setting up the trades at a time when the insider does not possess any non-public information.
The SEC filing disclosed that the shares were sold at a weighted average price of $31.94, with individual transactions occurring at prices between $31.66 and $32.58. This indicates a slight variance in the sale prices of the shares disposed of by the CEO.
Following the transactions, McMillan still holds a significant number of shares in the company, with 393,579 shares remaining in his possession. The sale represents a small fraction of his overall stake in Teradata, a global leader in prepackaged software services.
Investors often monitor insider sales as they may provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is important to note that insider selling can occur for various reasons and does not necessarily indicate a lack of confidence in the company.
Teradata Corp has not issued any public statement regarding the CEO's stock transactions as of the filing date. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol TDC.
InvestingPro Insights
As Teradata Corp's President and CEO Stephen McMillan parts with 10,000 shares, investors are keen to understand the broader financial landscape of the company. According to InvestingPro data, Teradata has a market capitalization of approximately $3.1 billion, with a notably high P/E ratio of 74.85, suggesting that the stock may be valued at a premium compared to its earnings. The company's revenue over the last twelve months as of Q1 2024 stands at $1.822 billion, with a modest year-over-year growth of 2.65%.
Despite the recent insider sale, an InvestingPro Tip highlights that management has been actively buying back shares, which could signal confidence in the company's value and future performance. Additionally, the stock is trading near its 52-week low, which, combined with a tip that the RSI suggests the stock is in oversold territory, may indicate a potential buying opportunity for value investors.
For those looking to delve deeper into Teradata's financials and future outlook, InvestingPro offers additional insights and metrics. There are currently 15 more InvestingPro Tips available for Teradata, which can help investors make more informed decisions. To access these tips, visit https://www.investing.com/pro/TDC. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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