Form 4: Lynrock Lake Trims Teradata Stake

Lynrock Lake LP, a 10% owner and director, reported selling 61,990 shares of Teradata Corp. common stock across three transactions on February 11, 2026.

Summary

• Lynrock Lake LP, a 10% owner and director of Teradata Corp. (TDC), sold a total of 61,990 shares of common stock.
• The sales occurred on February 11, 2026, across three separate transactions.
• The first transaction involved 10,514 shares at a weighted average price of $39.5733, with prices ranging from $39.0000 to $39.9900.
• The second transaction involved 40,807 shares at a weighted average price of $40.2372, with prices ranging from $40.0000 to $40.9863.
• The third transaction involved 10,669 shares at a weighted average price of $41.1917, with prices ranging from $41.0000 to $41.5700.
• Following these transactions, Lynrock Lake LP beneficially owns 9,354,676 shares indirectly through Lynrock Lake Master Fund LP.
• Cynthia Paul, Chief Investment Officer of Lynrock Lake LP and Sole Member of Lynrock Lake Partners LLC, is also a reporting person.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a moderately negative signal due to a significant insider reducing their stake, which could imply a tempered outlook or portfolio rebalancing, despite the sales occurring at favorable prices.

Positives

• The sales occurred at progressively higher price points, suggesting a favorable market for the disposition of shares.
• The reporting persons still retain a significant stake of over 9.35 million shares, indicating continued investment interest.

Negatives

• A significant 10% owner and director reducing their stake could be interpreted negatively by the market, potentially signaling a lack of confidence or a strategic portfolio rebalancing away from Teradata.
• The disposition of 61,990 shares represents a reduction in the overall beneficial ownership by the reporting group.

Future Outlook

The filing does not contain any forward-looking statements or guidance, as it is a report of past insider transactions.

Management Comments

• The Reporting Persons undertake to provide the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.
• Each of Lynrock, Lynrock GP and Ms. Paul disclaims beneficial ownership in these shares except to the extent of its or her respective pecuniary interest therein.

Industry Context

StockSavvy.ai notes that insider selling, especially by a significant 10% owner and director, can sometimes be viewed with caution by the market, particularly if it's not part of a pre-arranged 10b5-1 plan. However, without further context on Teradata's recent performance or broader industry trends in data analytics and cloud services, it's difficult to ascertain the specific implications for the company's competitive standing or market sentiment.

Comparison to Industry Standards

• Insider selling is a common occurrence across all industries. Without specific benchmarks for insider selling volume relative to market capitalization or average daily trading volume for comparable data analytics companies like Snowflake, Databricks, or Oracle, a direct comparison of this specific transaction's significance to industry standards is not feasible. The volume of shares sold (61,990) is relatively small compared to the total shares beneficially owned (over 9.35 million), suggesting it might be a routine portfolio adjustment rather than a strong bearish signal.

Related Party Transactions

• The transactions involve a 10% owner and director, Lynrock Lake LP, which are inherently related party transactions in the context of insider reporting. The shares are held indirectly by Lynrock Lake Master Fund LP, managed by Lynrock Lake LP and Lynrock Lake Partners LLC, with Cynthia Paul as CIO and Sole Member.

Stakeholder Impact

• Shareholders: May interpret the insider selling as a negative signal, potentially leading to downward pressure on the stock price.
• Management: The sale by a director and significant owner could prompt questions regarding their long-term commitment or outlook on the company's prospects.

Key Dates

Recommendation

While the insider selling by a 10% owner and director is a negative signal, the volume is relatively small compared to their total holdings, and the sales occurred at increasing prices. This suggests a potential portfolio rebalancing rather than a strong bearish conviction. Without additional context on Teradata's fundamentals or broader market conditions, a 'hold' recommendation is appropriate, advising investors to monitor future insider activity and company performance.

Keywords

Teradata, TDC, Lynrock Lake, Insider Sale, Form 4, Beneficial Ownership, Equity Transaction, Institutional Investor, Director Sale