Kathleen R. Cullen-Cote, the Chief People Officer of Teradata Corp (NYSE:TDC), has sold a total of 9,683 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The shares were sold at a price of $25.94 each, netting a total of approximately $251,177.
The transaction took place on August 13, 2024, and was part of a prearranged 10b5-1 trading plan adopted by Cullen-Cote on August 10, 2023. Such trading plans allow corporate insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
Following the sale, Cullen-Cote still owns 114,627 shares of Teradata Corp, reflecting her ongoing stake in the company's future. Teradata, a leading provider of database and analytics-related software, services, and products, is headquartered in San Diego, California.
Investors often monitor insider sales as they can provide insights into an insider's view of the company's value. However, it's important to note that insider selling can occur for various reasons and may not necessarily indicate a negative outlook on the company's future performance.
The sale by Cullen-Cote was executed under the compliance of SEC regulations, and the details of the transaction are publicly available for investors' scrutiny.
In other recent news, Teradata Corporation (NYSE:TDC), a cloud-based data analytics company, shared its second-quarter earnings for 2024, showing a 32% growth in cloud Annual Recurring Revenue (ARR), despite a 3% year-over-year decline in total ARR. The company also reported Non-GAAP earnings per share of $0.64 and generated $39 million in free cash flow. However, due to a challenging industry environment, Teradata announced a workforce reduction of 9-10%.
In light of these developments, an analyst from TD Cowen adjusted the price target on Teradata's shares from $37.00 to $29.00, maintaining a Hold rating. This decision followed a softer than expected quarter and a significant reduction in the company's forecast for fiscal year 2024. The company's ARR growth saw a 3% decrease in constant currency terms, falling short of the analyst's estimate.
Teradata has revised its financial outlook for the full year, projecting a decline in total ARR of 2-4% and cloud ARR growth of 28-32%. The company is confident in its cloud-first strategy, expecting the fourth quarter to be the strongest of the year. However, its 2025 target for $1 billion in cloud ARR has been pushed to 2026. These are the latest developments in the company's ongoing efforts to navigate a complex market environment.
InvestingPro Insights
In light of Kathleen R. Cullen-Cote's recent sale of Teradata Corp shares, it's worth examining the company's performance through the lens of InvestingPro metrics and tips. Teradata's market capitalization stands at $2.57 billion, with a high P/E ratio of 41.94, indicating investor expectations of future earnings growth. Despite a slight revenue contraction of 0.61% over the last twelve months as of Q2 2024, the company has maintained a robust gross profit margin of 60.63%, showcasing its ability to manage costs effectively.
InvestingPro Tips suggest that Teradata's management has been actively buying back shares, signaling confidence in the company's value. Additionally, the company is expected to see net income growth this year, which could be a positive sign for investors considering the recent insider selling activity.
While the stock has experienced significant volatility, with a substantial 30.6% drop over the last six months, the short-term outlook shows a strong return over the last week at 9.91%. This could indicate a potential rebound or a positive market reaction to recent company developments. For investors seeking a more in-depth analysis, there are 9 additional InvestingPro Tips available, which can provide further context and guidance on Teradata's financial health and future prospects.
For those interested in Teradata's stock performance and potential investment opportunities, more comprehensive insights can be found at InvestingPro, including analyst predictions and fair value estimations, which currently suggest a fair value above the recent closing price.
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