Zacks Investment Research downgraded shares of Teradata (NYSE:TDC) from a hold rating to a sell rating in a research note published on Monday.
According to Zacks, “Teradata reported dismal fourth-quarter 2017 results. Earnings declined on a year-over-year basis due to flat revenues. The company is being adversely impacted by its ongoing business transformation. Also, restructuring related costs, a sluggish spending environment in the domestic market and increasing competition continues to weigh on its financials. However, strategic partnerships with the big technology giants and acquisitions bode well for long-term growth. We believe that new customer wins and strengthening relationships with large vendors will primarily drive revenues and profits. We expect the company to benefit from transition to a subscription-based revenue model in the long run. In the past 12-months, Teradata shares have underperformed the industry it belongs to.”
Several other research firms also recently issued reports on TDC. Morgan Stanley upgraded Teradata from an underweight rating to an equal weight rating and increased their target price for the stock from $31.00 to $40.00 in a research report on Tuesday, January 23rd. Bank of America dropped their target price on Teradata from $48.00 to $45.00 and set a buy rating on the stock in a research report on Friday, February 9th. Wells Fargo & Co increased their target price on Teradata from $27.50 to $30.00 and gave the stock an underperform rating in a research report on Friday, February 9th. BMO Capital Markets increased their target price on Teradata from $32.00 to $40.00 and gave the stock a market perform rating in a research report on Friday, November 3rd. Finally, Royal Bank of Canada restated a hold rating and set a $30.00 target price on shares of Teradata in a research report on Wednesday, October 18th. Five investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the company’s stock. The company has an average rating of Hold and an average price target of $34.82.
Teradata (NYSE:TDC) last posted its earnings results on Thursday, February 8th. The technology company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.18. The firm had revenue of $626.00 million for the quarter, compared to the consensus estimate of $610.50 million. Teradata had a positive return on equity of 15.54% and a negative net margin of 3.11%. The business’s quarterly revenue was up .0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.67 earnings per share. sell-side analysts forecast that Teradata will post 1.07 EPS for the current year.
Teradata announced that its Board of Directors has initiated a share buyback program on Thursday, February 8th that allows the company to repurchase $310.00 million in outstanding shares. This repurchase authorization allows the technology company to buy shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.
In other Teradata news, CFO Mark Culhane acquired 4,500 shares of the stock in a transaction that occurred on Friday, December 1st. The shares were bought at an average price of $37.66 per share, for a total transaction of $169,470.00. Following the completion of the transaction, the chief financial officer now owns 29,924 shares of the company’s stock, valued at approximately $1,126,937.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 1.73% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. State of Tennessee Treasury Department purchased a new stake in shares of Teradata in the third quarter worth $2,703,000. Cornerstone Capital Management Holdings LLC. raised its position in Teradata by 2,458.9% during the third quarter. Cornerstone Capital Management Holdings LLC. now owns 305,531 shares of the technology company’s stock valued at $10,322,000 after purchasing an additional 293,591 shares in the last quarter. Virginia Retirement Systems ET AL raised its position in Teradata by 171.9% during the third quarter. Virginia Retirement Systems ET AL now owns 34,800 shares of the technology company’s stock valued at $1,176,000 after purchasing an additional 22,000 shares in the last quarter. Lockheed Martin Investment Management Co. purchased a new stake in Teradata during the third quarter valued at about $1,304,000. Finally, Jupiter Asset Management Ltd. raised its position in Teradata by 7.6% during the third quarter. Jupiter Asset Management Ltd. now owns 2,392,621 shares of the technology company’s stock valued at $80,847,000 after purchasing an additional 169,000 shares in the last quarter. Institutional investors own 97.94% of the company’s stock.
Teradata Company Profile
Teradata Corporation is a provider of analytic data platforms, analytic applications and related services. The Company’s segments include Americas region (North America and Latin America) and International region (Europe, Middle East, Africa, Asia Pacific and Japan). Its offerings include analytics solutions, ecosystem architecture consulting and hybrid cloud solutions.
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