Zacks Research Downgrades Teradata (NYSE:TDC) to Strong Sell

Key Points

• Teradata's stock rating was downgraded by Zacks Research from "hold" to "strong sell," affecting investor sentiment and expectations for the company's future earnings.
• UBS Group lowered its price target for Teradata from $24.00 to $23.00, indicating cautious outlook from analysts, while the average rating remains at "Hold."
• In its recent financial report, Teradata posted earnings per share of $0.47, exceeding consensus estimates, but experienced a 6.4% decline in year-over-year revenue.

Teradata (NYSE:TDC - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday, September 8th,Zacks.com reports. Zacks Research also issued estimates for Teradata's Q3 2025 earnings at $0.29 EPS, FY2025 earnings at $1.29 EPS, Q2 2026 earnings at $0.29 EPS, Q4 2026 earnings at $0.30 EPS, FY2026 earnings at $1.36 EPS, Q1 2027 earnings at $0.37 EPS, Q2 2027 earnings at $0.37 EPS and FY2027 earnings at $1.50 EPS.

A number of other equities research analysts have also recently commented on TDC. UBS Group cut their price target on shares of Teradata from $24.00 to $23.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Wall Street Zen cut Teradata from a "buy" rating to a "hold" rating in a research report on Saturday, August 23rd. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Teradata has an average rating of "Hold" and an average price target of $26.86.

Teradata Stock Up 1.1%

Teradata stock traded up $0.23 during mid-day trading on Monday, hitting $21.38. The company had a trading volume of 274,135 shares, compared to its average volume of 1,224,725. Teradata has a 12 month low of $18.43 and a 12 month high of $33.69. The company has a market capitalization of $2.02 billion, a PE ratio of 18.90, a price-to-earnings-growth ratio of 5.36 and a beta of 0.78. The stock's 50 day moving average price is $21.30 and its two-hundred day moving average price is $21.81. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 2.78.

Teradata (NYSE:TDC - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The technology company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.06. Teradata had a return on equity of 96.29% and a net margin of 6.57%.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 firm earned $0.64 EPS. Teradata's quarterly revenue was down 6.4% compared to the same quarter last year. Teradata has set its Q3 2025 guidance at 0.510-0.55 EPS. FY 2025 guidance at 2.170-2.25 EPS. As a group, sell-side analysts anticipate that Teradata will post 1.31 earnings per share for the current fiscal year.

Institutional Trading of Teradata

Institutional investors have recently bought and sold shares of the stock. Advisory Services Network LLC lifted its stake in shares of Teradata by 27.2% during the 2nd quarter. Advisory Services Network LLC now owns 32,154 shares of the technology company's stock worth $673,000 after acquiring an additional 6,872 shares during the last quarter. Caxton Associates LLP bought a new stake in shares of Teradata during the second quarter worth $1,945,000. Public Sector Pension Investment Board boosted its stake in shares of Teradata by 7.4% during the second quarter. Public Sector Pension Investment Board now owns 325,929 shares of the technology company's stock valued at $7,271,000 after purchasing an additional 22,400 shares during the period. Corient Private Wealth LLC bought a new position in shares of Teradata in the second quarter worth about $223,000. Finally, State of Tennessee Department of Treasury increased its stake in Teradata by 75.2% in the 2nd quarter. State of Tennessee Department of Treasury now owns 40,728 shares of the technology company's stock worth $909,000 after buying an additional 17,488 shares during the period. 90.31% of the stock is currently owned by institutional investors.

About Teradata

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.