UBS Group Cuts Teradata (NYSE:TDC) Price Target to $32.00

Key Points

• UBS Group lowered Teradata’s price target to $32 from $36 while maintaining a “neutral” rating, implying 9.87% upside from the prior close.
• Analyst sentiment remains broadly cautious: Teradata has a consensus “Hold” rating and an average price target of $34.33, with targets ranging from $27 to $49.
• Teradata exceeded quarterly expectations, reporting $0.69 in EPS versus a $0.56 estimate and $410 million in revenue; however, company insiders recently sold shares under pre-arranged trading plans.

Teradata (NYSE:TDC - Get Free Report) had its price target decreased by UBS Group from $36.00 to $32.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has a "neutral" rating on the technology company's stock. UBS Group's target price indicates a potential upside of 9.87% from the company's previous close.

Other analysts also recently issued reports about the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Teradata in a research report on Wednesday, June 24th. Barclays reduced their price objective on Teradata from $28.00 to $27.00 and set an "underweight" rating for the company in a research report on Wednesday, August 5th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $34.00 target price on shares of Teradata in a research report on Thursday, July 16th. Citizens Jmp restated a "market outperform" rating and issued a $49.00 price target on shares of Teradata in a research note on Wednesday, June 10th. Finally, Morgan Stanley restated an "equal weight" rating and set a $29.00 price objective (down from $35.00) on shares of Teradata in a research note on Monday, August 10th. Three investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $34.33.

Teradata Price Performance

Shares of NYSE:TDC traded up $0.23 during midday trading on Monday, reaching $29.12. 63,814 shares of the company's stock were exchanged, compared to its average volume of 2,376,996. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.91 and a current ratio of 0.91. The company's 50 day simple moving average is $28.87 and its two-hundred day simple moving average is $29.65. The firm has a market capitalization of $2.71 billion, a PE ratio of 6.12, a price-to-earnings-growth ratio of 2.14 and a beta of 0.58. Teradata has a 12 month low of $20.33 and a 12 month high of $41.78.

Teradata (NYSE:TDC - Get Free Report) last posted its earnings results on Tuesday, August 4th. The technology company reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.13. Teradata had a net margin of 27.08% and a return on equity of 47.25%. The business had revenue of $410.00 million for the quarter, compared to analyst estimates of $396.13 million. During the same quarter in the prior year, the firm earned $0.47 EPS. The firm's quarterly revenue was up .5% compared to the same quarter last year. Teradata has set its Q3 2026 guidance at 0.550-0.590 EPS and its FY 2026 guidance at 2.650-2.730 EPS. Equities research analysts expect that Teradata will post 1.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Michael D. Hutchinson sold 48,077 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $30.00, for a total value of $1,442,310.00. Following the completion of the sale, the chief operating officer directly owned 171,927 shares in the company, valued at $5,157,810. This represents a 21.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Mcmillan sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $30.02, for a total transaction of $300,200.00. Following the transaction, the chief executive officer owned 752,446 shares of the company's stock, valued at approximately $22,588,428.92. The trade was a 1.31% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On Teradata

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of Teradata during the 2nd quarter valued at approximately $567,999,000. Bank of America Corp DE bought a new stake in shares of Teradata in the 2nd quarter worth approximately $44,869,000. Alyeska Investment Group L.P. purchased a new position in Teradata in the second quarter valued at approximately $44,472,000. Quantinno Capital Management LP grew its holdings in Teradata by 1,158.9% during the first quarter. Quantinno Capital Management LP now owns 1,294,502 shares of the technology company's stock valued at $33,178,000 after purchasing an additional 1,191,677 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in Teradata in the second quarter worth $24,728,000. Institutional investors own 90.31% of the company's stock.

About Teradata

Teradata Corporation NYSE: TDC is a data and analytics company that provides cloud-based and enterprise data-management solutions. Its platform is designed to help organizations collect, integrate, govern and analyze data from multiple sources, supporting business intelligence, advanced analytics and artificial intelligence initiatives.

The company's offerings include Teradata Vantage, its analytics and data-platform technology, and VantageCloud, a cloud-based version available through public, private and hybrid cloud environments.

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