Teradata Corp (NASDAQ:TDC) disclosed that its President and CEO, Stephen McMillan, sold 10,000 shares of the company's common stock on November 9, 2026. The shares changed hands at prices ranging from $31.71 to $33.27, generating a total transaction value of $325,100.
The sale was carried out under a Rule 10b5-1 trading plan that McMillan adopted on May 18, 2026. Such plans allow company insiders to schedule stock sales in advance, providing a defense against claims of trading on nonpublic information. After the transaction, McMillan directly holds 742,446 shares of Teradata common stock. He serves as both a Director and the President and CEO of the company.
At the time of the sale, Teradata's stock was trading at a price-to-earnings ratio of 6.84, and the company had a market capitalization of $3 billion. An analysis of the stock's valuation suggests that it remains undervalued relative to its Fair Value, according to InvestingPro. For investors seeking deeper insights into Teradata's valuation and financial health, a comprehensive Pro Research Report is available, covering this and more than 1,400 other US equities on InvestingPro.
The insider sale comes amid a backdrop of recent financial results that have drawn mixed reactions. In its fiscal third-quarter 2026 report, Teradata posted non-GAAP earnings of $0.70 per share, surpassing Wall Street's consensus estimate of $0.58 per share. However, revenue for the quarter came in at $399 million, slightly below the forecasted $403.66 million.
The company also reported a 1% increase in total annual recurring revenue (ARR) as reported, and a 2% rise in constant currency. Cloud ARR showed stronger momentum, growing 11%. Despite the earnings beat, the modest revenue shortfall and a softer near-term sales outlook have caught investors' attention, highlighting mixed market reactions. Analyst firms have not provided any updates regarding stock upgrades or downgrades.
The financial community remains focused on Teradata's ability to address its revenue challenges moving forward. The company's performance in the coming quarters will be closely watched to see if it can reverse the revenue shortfall trend and capitalize on its cloud growth.