Teradata (NYSE:TDC) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Teradata Corporation reported earnings per share of $0.47, exceeding expectations of $0.41, with revenues of $408 million, above the forecast of $399.73 million.
• Shares of Teradata gapped up from $20.23 to $21.62 following the earnings announcement, and last traded at $21.00 with a volume of 241,669 shares.
• Institutional investors hold a significant 90.31% stake in Teradata, with notable increases in holdings from several hedge funds in the first quarter.

Shares of Teradata Corporation (NYSE:TDC - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $20.23, but opened at $21.62. Teradata shares last traded at $21.00, with a volume of 241,669 shares.

The technology company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.06. The business had revenue of $408.00 million during the quarter, compared to analysts' expectations of $399.73 million. Teradata had a return on equity of 129.98% and a net margin of 8.10%. The firm's revenue for the quarter was down 6.4% compared to the same quarter last year. During the same period last year, the firm posted $0.64 EPS.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. Barclays cut their price objective on Teradata from $25.00 to $22.00 and set an "underweight" rating on the stock in a research report on Monday, April 21st. Northland Capmk lowered shares of Teradata from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 7th. UBS Group raised shares of Teradata from a "sell" rating to a "hold" rating and dropped their target price for the stock from $26.00 to $24.00 in a report on Friday, June 6th. Guggenheim decreased their target price on shares of Teradata from $37.00 to $35.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Finally, Morgan Stanley raised shares of Teradata from an "equal weight" rating to an "overweight" rating and set a $26.00 target price on the stock in a research report on Tuesday, April 8th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $27.25.

Institutional Investors Weigh In On Teradata

Several hedge funds and other institutional investors have recently modified their holdings of TDC. SG Americas Securities LLC grew its stake in Teradata by 1,220.2% in the first quarter. SG Americas Securities LLC now owns 45,019 shares of the technology company's stock worth $1,012,000 after purchasing an additional 41,609 shares during the period. Penserra Capital Management LLC raised its position in Teradata by 41.0% during the 1st quarter. Penserra Capital Management LLC now owns 502,048 shares of the technology company's stock valued at $11,286,000 after purchasing an additional 146,030 shares in the last quarter. Tidal Investments LLC purchased a new position in Teradata during the 4th quarter worth $631,000. LSV Asset Management grew its stake in Teradata by 95.6% during the 1st quarter. LSV Asset Management now owns 1,588,999 shares of the technology company's stock valued at $35,721,000 after purchasing an additional 776,799 shares during the last quarter. Finally, Wedge Capital Management L L P NC raised its holdings in Teradata by 29.3% in the 1st quarter. Wedge Capital Management L L P NC now owns 74,831 shares of the technology company's stock worth $1,682,000 after purchasing an additional 16,959 shares during the period. Institutional investors own 90.31% of the company's stock.

Teradata Stock Up 4.1%

The company has a quick ratio of 0.82, a current ratio of 0.84 and a debt-to-equity ratio of 3.11. The business has a 50-day moving average price of $21.97 and a 200-day moving average price of $23.35. The firm has a market capitalization of $2.01 billion, a PE ratio of 14.83, a price-to-earnings-growth ratio of 6.09 and a beta of 0.83.

Teradata Company Profile

Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, an open and connected platform designed to leverage data across an enterprise. Its business consulting services include support services for organizations to establish a data and analytic vision, enable a multi-cloud ecosystem architecture, and identify and operationalize analytical opportunities, as well as to ensure the analytical infrastructure delivers value.

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