Revealing a significant insider sell on September 11, Hillary Ashton, Chief Product Officer at Teradata TDC, as per the latest SEC filing.

What Happened: Ashton’s recent move involves selling 14,962 shares of Teradata. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $411,903.

Monitoring the market, Teradata‘s shares down by 0.0% at $27.67 during Thursday’s morning.

Delving into Teradata’s Background

Teradata Corp provides analytic data products and related services. The Company operates in data and analytics, which captures, integrates, stores, manages, and analyzes data of all types to answer business questions and deliver insight; and marketing applications, which offer marketing management products to help businesses win customer loyalty. Its solutions include components such as data warehousing, Asset optimization, Fraud prevention, Product innovation, and risk mitigation. A majority of the firm’s revenue is generated in the United States.

Teradata: Delving into Financials

Negative Revenue Trend: Examining Teradata’s financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -5.63% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 60.78%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Teradata’s EPS reflects a decline, falling below the industry average with a current EPS of 0.38.

Debt Management: Teradata’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 8.13, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 43.23 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.54 is lower than the industry average, implying a discounted valuation for Teradata’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 11.29, Teradata’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Cracking Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Teradata’s Insider Trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.