Teradata (NYSE:TDC) Shares Gap Up After Strong 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.

Teradata Corporation (NYSE:TDC - Get Free Report)'s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. 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 trading hands.

The technology company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.06. Teradata had a net margin of 6.57% and a return on equity of 96.29%. The firm had revenue of $408.00 million during the quarter, compared to analyst estimates of $399.73 million. During the same quarter in the previous year, the business earned $0.64 EPS. The business's quarterly revenue was down 6.4% compared to the same quarter last year.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Guggenheim lowered their target price on shares of Teradata from $37.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. Wall Street Zen raised shares of Teradata from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. UBS Group decreased their price target on shares of Teradata from $24.00 to $23.00 and set a "neutral" rating for the company in a report on Wednesday. Northland Capmk lowered shares of Teradata from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 7th. Finally, Northland Securities lowered shares of Teradata from an "outperform" rating to a "market perform" rating and set a $21.00 price target for the company. in a report on Wednesday, May 7th. One analyst has rated the stock with a sell rating, five have given a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $26.86.

Hedge Funds Weigh In On Teradata

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TDC. Cetera Investment Advisers lifted its position in Teradata by 7.2% during the 2nd quarter. Cetera Investment Advisers now owns 10,991 shares of the technology company's stock worth $245,000 after buying an additional 736 shares in the last quarter. Creative Planning lifted its position in Teradata by 52.8% during the 2nd quarter. Creative Planning now owns 18,274 shares of the technology company's stock worth $408,000 after buying an additional 6,314 shares in the last quarter. SG Americas Securities LLC lifted its position in Teradata by 844.7% during the 2nd quarter. SG Americas Securities LLC now owns 425,290 shares of the technology company's stock worth $9,488,000 after buying an additional 380,271 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in Teradata by 7.2% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 24,544 shares of the technology company's stock worth $548,000 after buying an additional 1,642 shares in the last quarter. Finally, Police & Firemen s Retirement System of New Jersey lifted its position in Teradata by 4.6% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 37,053 shares of the technology company's stock worth $827,000 after buying an additional 1,642 shares in the last quarter. 90.31% of the stock is owned by institutional investors and hedge funds.

Teradata Stock Down 1.4%

The firm's 50-day simple moving average is $21.92 and its 200 day simple moving average is $23.13. The company has a debt-to-equity ratio of 2.78, a quick ratio of 0.82 and a current ratio of 0.84. The stock has a market capitalization of $1.94 billion, a P/E ratio of 18.15, a PEG ratio of 4.89 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.