Teradata Corp (NYSE:TDC)'s Chief Customer Officer Michael D. Hutchinson has sold a total of $609,797 worth of company stock, according to a recent SEC filing. The transactions occurred on May 9, with shares sold at an average price of $32.962.
The sale, involving 18,500 shares of Teradata Corp (NYSE:TDC), took place at weighted average prices ranging from $32.95 to $32.965 per share. The filing indicated that Hutchinson still retains 55,190 shares of the company following the transaction.
Investors often monitor insider sales as they can provide insights into an executive's view of the company's current valuation. Hutchinson's sale represents a notable transaction size for an individual insider, and the provided details ensure transparency regarding the price range of the shares sold.
The filing did not disclose a specific reason for the sale. However, insiders may sell shares for various reasons, including diversifying their investment portfolio, tax planning, or other personal financial considerations. It's important to note that such sales do not necessarily reflect a negative outlook on the company's future performance.
Teradata Corp, a leader in the prepackaged software services industry, has not commented on the transaction.
InvestingPro Insights
As Teradata Corp's Chief Customer Officer Michael D. Hutchinson sells a significant amount of company stock, investors and market watchers are keen to understand the company's current financial standing and future outlook. The recent sale of shares by Hutchinson has brought Teradata into focus, and InvestingPro provides deeper insights into the company's performance and valuation metrics.
One of the key InvestingPro Tips for Teradata is the expectation of net income growth this year, which suggests potential for a positive shift in the company's profitability. Additionally, the Relative Strength Index (RSI) indicates that the stock is currently in oversold territory, which might interest investors looking for potential entry points in the market.
The InvestingPro Data metrics further illuminate the company's financial health. Teradata's market capitalization stands at $3.23 billion USD, with an adjusted P/E ratio of 76.79, as of the last twelve months leading up to Q1 2024. The revenue has shown a modest growth of 2.65% during the same period, while the gross profit margin remains strong at 60.21%. However, it is noteworthy that the company's stock price has experienced a significant decline over the past week, month, three months, and six months, with a 1-week price total return of -11.71% and a 3-month price total return of -32.88%.
For those interested in further analysis and additional InvestingPro Tips, there are 17 more tips available on the Teradata InvestingPro page, which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This comprehensive analysis may provide investors with a more detailed understanding of the company's financials, stock performance, and potential investment opportunities.
In summary, while insider transactions like Hutchinson's sale can provide valuable insights, they should be considered alongside a broad spectrum of financial data and market analysis. The metrics and tips provided by InvestingPro can help investors make more informed decisions by offering a clearer picture of Teradata's financial standing and market valuation.
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