Form 4: Teradata CEO Sells 50,000 Shares Under 10b5-1 Plan
Insider Transaction Report
Teradata's President and CEO, Stephen McMillan, sold 50,000 shares of common stock for approximately $1.5 million under a pre-arranged trading plan.
Summary
- Stephen McMillan, President and CEO, and a Director of Teradata Corp. (TDC), sold 50,000 shares of common stock.
- The transaction occurred on February 26, 2026.
- The shares were sold at a weighted average price of $30.2625 per share, with individual transaction prices ranging from $30.015 to $30.545.
- The total value of the sale was approximately $1,513,125.
- The sale was conducted pursuant to a Rule 10b5-1 pre-arranged trading plan, indicating it was scheduled in advance.
- Following the transaction, Stephen McMillan directly beneficially owns 663,190 shares of Teradata common stock.
- A Limited Power of Attorney, effective February 17, 2026, was granted to Irving Gomez, Scot F. Rogers, and Juliet C. Shadoan to handle SEC filings on McMillan's behalf.
Sentiment
Score: 4
Explanation: StockSavvy.ai views this as a moderately negative signal, as a significant insider sale by the CEO, even under a 10b5-1 plan, can raise questions about management's long-term outlook or valuation perception.
Negatives
- Insider selling by a high-ranking executive (President and CEO) could be perceived negatively by the market, potentially suggesting a belief that the stock is fully valued or a lack of confidence.
- The sale of 50,000 shares represents a significant amount of stock.
Industry Context
StockSavvy.ai notes that insider sales, especially by top executives, are often scrutinized by investors for potential signals about future company performance or valuation. While a 10b5-1 plan mitigates the immediate negative perception by indicating a pre-scheduled sale, the market still considers the executive's decision to sell a substantial number of shares.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Power of Attorney Grant | Stephen McMillan granted a Limited Power of Attorney to Irving Gomez, Scot F. Rogers, and Juliet C. Shadoan to handle his SEC filings (Forms 3, 4, 5, 144) and EDGAR account administration. | 02/17/2026 | Streamlines compliance for the reporting person by delegating filing responsibilities to designated attorneys-in-fact. |
Stakeholder Impact
- Shareholders: May interpret the sale as a negative signal regarding the company's future prospects or stock valuation.
Key Dates
| Date | Description |
|---|---|
| 02/03/2026 | Date Stephen McMillan signed the Limited Power of Attorney. |
| 02/17/2026 | Effective date of the Limited Power of Attorney. |
| 02/26/2026 | Date of common stock transaction (sale of 50,000 shares). |
| 02/27/2026 | Date Form 4 was signed and filed. |
Recommendation
holdWhile the sale by the CEO is a notable event, its execution under a pre-arranged 10b5-1 plan suggests a planned diversification rather than an immediate reaction to new negative information. Investors should 'hold' and monitor future insider activity and company performance rather than making an immediate 'sell' decision based solely on this filing.
Keywords
Teradata, TDC, Stephen McMillan, Insider Sale, Form 4, CEO, Stock Transaction, 10b5-1 Plan, Corporate Governance
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