We'd be surprised if Teradyne, Inc. (NASDAQ:TER) shareholders haven't noticed that the Vice President, Ryan Driscoll, recently sold US$257k worth of stock at US$378 per share. That sale was 26% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Teradyne

Notably, that recent sale by Ryan Driscoll is the biggest insider sale of Teradyne shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$357. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Teradyne Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Teradyne insiders own 0.1% of the company, worth about US$63m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Teradyne Tell Us?

An insider sold Teradyne shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Teradyne is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Teradyne. In terms of investment risks, we've identified 1 warning sign with Teradyne and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.