We wouldn't blame Teradyne, Inc. (NASDAQ:TER) shareholders if they were a little worried about the fact that Michael Bradley, the Independent Director recently netted about US$876k selling shares at an average price of US$61.92. That's a big dump, and it decreased their holding size by 23%, which is notable but not too bad.
Teradyne Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Chair of the Board, Roy Vallee, for US$1.5m worth of shares, at about US$57.07 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$63.62. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 25% of Roy Vallee's stake.
In the last twelve months insiders netted US$11m for 229469 shares sold. In the last year Teradyne insiders didn't buy any company stock. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Teradyne Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Teradyne insiders own 0.5% of the company, worth about US$54m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Teradyne Tell Us?
An insider hasn't bought Teradyne stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Teradyne is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Teradyne.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.