Teradata (NYSE:TDC) Shares Gap Down After Analyst Downgrade

Key Points

• Teradata shares gapped down sharply after Barclays cut its price target to $27 from $28 and maintained an Underweight rating; the stock opened at $27.52 versus a prior close of $34.39.
• Despite the market reaction, Teradata reported second-quarter adjusted EPS of $0.69 and revenue of $410 million, both above analyst expectations. Adjusted free cash flow rose 226% to $127 million, and full-year 2026 EPS guidance was raised to $2.65–$2.73.
• The outlook remains mixed: third-quarter revenue guidance fell below consensus, while recurring and total revenue are expected to decline year over year. Analysts’ consensus rating is Hold, with an average target price around $35.44.

Teradata Corporation (NYSE:TDC - Get Free Report)'s stock price gapped down prior to trading on Wednesday after Barclays lowered their price target on the stock from $28.00 to $27.00. The stock had previously closed at $34.39, but opened at $27.52. Barclays currently has an underweight rating on the stock. Teradata shares last traded at $28.10, with a volume of 1,636,595 shares changing hands.

Other analysts have also recently issued reports about the company. Citizens Jmp reissued a "market outperform" rating and issued a $49.00 price target on shares of Teradata in a report on Wednesday, June 10th. Citigroup reissued a "buy" rating on shares of Teradata in a report on Wednesday, July 29th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Teradata in a research note on Wednesday, June 24th. UBS Group reduced their price objective on shares of Teradata from $36.00 to $34.00 and set a "neutral" rating for the company in a research note on Wednesday, May 6th. Finally, Zacks Research downgraded shares of Teradata from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 20th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $35.44.

Insider Buying and Selling at Teradata

In related news, Director Timothy C. K. Chou sold 5,657 shares of the business's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $33.72, for a total value of $190,754.04. Following the sale, the director directly owned 39,210 shares in the company, valued at $1,322,161.20. The trade was a 12.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Richard J. Petley sold 17,227 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $35.00, for a total transaction of $602,945.00. Following the completion of the sale, the executive directly owned 188,571 shares in the company, valued at approximately $6,599,985. The trade was a 8.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 77,201 shares of company stock valued at $2,486,235. Insiders own 0.96% of the company's stock.

Teradata News Roundup

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Teradata reported second-quarter adjusted EPS of $0.69, exceeding estimates of approximately $0.55-$0.56 and rising from $0.47 a year earlier. Revenue of $410 million also surpassed expectations of $396 million. Teradata Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and cash generation improved substantially. Non-GAAP operating margin increased to 21.5%, operating cash flow rose 147% to $106 million, and adjusted free cash flow increased 226% to $127 million. Recurring revenue grew 3% to $363 million. Teradata Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Teradata raised its fiscal 2026 EPS outlook to $2.65-$2.73, above the consensus estimate of $2.47, which indicates management expects improved profitability despite limited revenue growth.
• Neutral Sentiment: Analysts’ average target price is reported at $35.56, materially above the stock’s recent trading level, although estimates vary widely. The broader analyst view therefore remains mixed. Brokerages Set Teradata Target Price
• Negative Sentiment: Third-quarter revenue guidance of $391.0 million-$399.4 million fell short of the $403 million consensus estimate. Management expects recurring revenue to decline 2%-4% year over year and total revenue to decline 4%-6%, reinforcing concerns about sluggish demand.
• Negative Sentiment: Teradata maintained fiscal 2026 revenue guidance of $1.6 billion-$1.7 billion, below the $1.7 billion consensus at the midpoint. Barclays subsequently lowered its price target to $27 from $28 and assigned an Underweight rating, citing limited growth prospects. Barclays Lowers Teradata Price Target

Institutional Trading of Teradata

Several large investors have recently modified their holdings of the business. Sound Income Strategies LLC raised its position in shares of Teradata by 1,162.8% during the 4th quarter. Sound Income Strategies LLC now owns 985 shares of the technology company's stock worth $29,000 after purchasing an additional 907 shares during the last quarter. Financial Management Professionals Inc. purchased a new position in Teradata during the second quarter worth $36,000. Elevation Wealth Partners LLC raised its holdings in shares of Teradata by 587.2% in the second quarter. Elevation Wealth Partners LLC now owns 1,182 shares of the technology company's stock worth $41,000 after acquiring an additional 1,010 shares during the last quarter. SJS Investment Consulting Inc. raised its holdings in shares of Teradata by 25,800.0% in the first quarter. SJS Investment Consulting Inc. now owns 1,813 shares of the technology company's stock worth $46,000 after acquiring an additional 1,806 shares during the last quarter. Finally, Parallel Advisors LLC lifted its position in shares of Teradata by 197.5% in the fourth quarter. Parallel Advisors LLC now owns 1,529 shares of the technology company's stock valued at $47,000 after acquiring an additional 1,015 shares in the last quarter. 90.31% of the stock is currently owned by institutional investors and hedge funds.

Teradata Price Performance

The company has a debt-to-equity ratio of 0.85, a current ratio of 1.30 and a quick ratio of 1.29. The firm has a market capitalization of $2.62 billion, a PE ratio of 6.39, a P/E/G ratio of 2.36 and a beta of 0.60. The company has a 50-day moving average price of $32.53 and a 200-day moving average price of $30.16.

Teradata (NYSE:TDC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The technology company reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.56 by $0.13. Teradata had a return on equity of 57.44% and a net margin of 24.93%.The firm had revenue of $410.00 million during the quarter, compared to analysts' expectations of $396.13 million. During the same quarter last year, the business posted $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. Sell-side analysts forecast that Teradata Corporation will post 1.78 EPS for the current year.

About Teradata

Teradata Corporation is a global provider of enterprise analytics and data management solutions designed to help organizations unlock value from their data assets. The company offers both cloud-based and on-premises platforms that support data warehousing, big data analytics, and machine learning. Through its flagship analytics ecosystem, Teradata enables businesses to integrate, analyze, and manage large volumes of structured and unstructured data at scale.

Central to Teradata's product suite is the Teradata Vantage analytics platform, which unifies diverse data types across multiple environments—including public and private clouds—into a single, coherent architecture.

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