Teradata (NYSE:TDC) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Teradata from a “strong-buy” to a “buy,” adding to a mixed analyst picture that currently gives the stock an overall Hold rating with an average price target of $35.56.
• Teradata recently reported better-than-expected quarterly results, posting EPS of $0.88 versus the $0.77 estimate and revenue of $444 million versus $430.1 million expected. The company also raised guidance, setting FY2026 EPS guidance at 2.55–2.65.
• Despite solid fundamentals, the stock traded at $30.52 and has seen insider selling, including shares sold by the CRO and CEO in recent weeks. Institutional investors still hold the vast majority of shares, with 90.31% ownership.

Teradata (NYSE:TDC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

Other analysts have also recently issued reports about the stock. Royal Bank Of Canada restated a "sector perform" rating and set a $34.00 target price on shares of Teradata in a report on Thursday. Barclays cut their price objective on Teradata from $29.00 to $28.00 and set an "underweight" rating for the company in a research report on Wednesday, May 6th. Weiss Ratings reissued a "hold (c)" rating on shares of Teradata in a research note on Wednesday, June 24th. Zacks Research cut Teradata from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 20th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Teradata in a research report on Friday, May 22nd. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Teradata has an average rating of "Hold" and an average price target of $35.56.

Teradata Price Performance

Shares of Teradata stock opened at $30.52 on Friday. The company has a current ratio of 1.30, a quick ratio of 1.29 and a debt-to-equity ratio of 0.85. The company's 50-day moving average price is $33.20 and its two-hundred day moving average price is $30.22. Teradata has a 52 week low of $19.83 and a 52 week high of $41.78. The stock has a market cap of $2.87 billion, a PE ratio of 7.00, a price-to-earnings-growth ratio of 2.27 and a beta of 0.59.

Teradata (NYSE:TDC - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.88 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.11. The company had revenue of $444.00 million during the quarter, compared to analyst estimates of $430.10 million. Teradata had a net margin of 24.93% and a return on equity of 57.44%. The business's revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.66 EPS. Teradata has set its FY 2026 guidance at 2.550-2.650 EPS and its Q2 2026 guidance at 0.530-0.570 EPS. As a group, sell-side analysts anticipate that Teradata will post 1.78 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CRO Richard J. Petley sold 17,227 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $35.00, for a total transaction of $602,945.00. Following the sale, the executive owned 188,571 shares in the company, valued at $6,599,985. This represents a 8.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Mcmillan sold 20,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $31.71, for a total value of $634,200.00. Following the completion of the transaction, the chief executive officer directly owned 762,446 shares in the company, valued at approximately $24,177,162.66. This trade represents a 2.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 77,201 shares of company stock worth $2,486,235. Company insiders own 0.96% of the company's stock.

Institutional Investors Weigh In On Teradata

A number of large investors have recently bought and sold shares of TDC. Sound Income Strategies LLC lifted its stake in shares of Teradata by 1,162.8% in the fourth quarter. Sound Income Strategies LLC now owns 985 shares of the technology company's stock valued at $29,000 after buying an additional 907 shares in the last quarter. Financial Management Professionals Inc. bought a new stake in shares of Teradata during the second quarter worth about $36,000. Elevation Wealth Partners LLC raised its holdings in shares of Teradata by 587.2% in the 2nd 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. lifted its position in Teradata by 25,800.0% in the 1st quarter. SJS Investment Consulting Inc. now owns 1,813 shares of the technology company's stock valued at $46,000 after acquiring an additional 1,806 shares in the last quarter. Finally, Parallel Advisors LLC lifted its position in Teradata by 197.5% in the 4th 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 Company Profile

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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