Teradata Corporation (NYSE:TDC) has witnessed interesting insider activity over the past week. At least four Board Directors acquired stock from the company. So many insiders disregarding the benefits of diversifying their investments certainly make me feel bullish about this company. Let’s take a look at it, and the aforementioned transactions, and try elucidate the reasons behind them.
Teradata Corporation (NYSE:TDC) is a $7 billion market cap provider of analytic data solutions like integrated data warehousing, big data analytics and business applications, among others. The company´s stock is down more than 6% over the last 30 days, despite a recent estimate-beating earnings report. Earnings per share increased 15.1% from the year-ago quarter, but revenues only rose by 3.9%, to $769.0 million.
It looks like the insiders took advantage of the low stock prices to add Teradata Corporation (NYSE:TDC) shares to their portfolios, and this looks like a wise decision. Its margins, returns and debt levels comfortably surpass industry average values, and analysts expect it to deliver very decent average annual EPS growth rates over the years to come (10%-11%). Although growth will not be stellar, the security of this investment makes it worthwhile.
Now, let’s take a look at the details of the transactions:
– On. Feb. 10th, Michael Koehler, President and Chief Executive Officer, acquired 10,000 shares for $41.30 each. He now owns 169,925 shares directly, and more than 165,000 shares indirectly.
On Feb. 12th:
– Nancy Cooper purchased 680 shares of the company at a price of $43.21 per share, and now holds 18,039 shares.
– William Stavropoulos procured 1,000 for $43.12 each. He currently owns 3,000 shares indirectly, plus 33,854 of them, directly.
– David Kepler bought 2,000 units of Common Stock and paid $43.05 for each of them. His holdings now amount to 40,203 shares.
All of these transactions resulted in a total investment of roughly $600,000. This can certainly be interpreted as a bullish signal and should motivate a further analysis of the company and its fundamentals.
Although some of the main hedge fund bulls on Teradata Corporation (NYSE:TDC) have reduced their stakes over the past few quarters, many investment gurus still seem to like the company. Glenn Russell Dubin’s Highbridge Capital Management increased its participation by 53%, to 1,207,092 shares, during the third quarter. In addition, Christopher Medlock James’ Partner Fund Management, and Seymour Sy Kaufman and Michael Stark’s Crosslink Capital started millionaire positions in the stock over the same period.
Disclosure: Javier Hasse holds no position in any stocks mentioned