Teradata (TDC) Rating Lowered to Sell at Zacks Investment Research

Teradata (NYSE:TDC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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.”

Other research analysts have also issued research reports about the company. BMO Capital Markets boosted their target price on Teradata from $40.00 to $42.00 and gave the company a “market perform” rating in a report on Friday. Mizuho reissued a “sell” rating and issued a $32.00 target price on shares of Teradata in a report on Monday, January 22nd. Wells Fargo & Co boosted their target price on Teradata from $27.50 to $30.00 and gave the company an “underperform” rating in a report on Friday. Morgan Stanley raised Teradata from an “underweight” rating to an “equal weight” rating and boosted their target price for the company from $31.00 to $40.00 in a report on Tuesday, January 23rd. Finally, Summit Redstone raised Teradata from a “hold” rating to a “buy” rating in a report on Monday, November 13th. Five equities research 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. Teradata presently has a consensus rating of “Hold” and an average target price of $34.82.

Teradata (NYSE TDC) traded up $0.07 during trading hours on Monday, hitting $35.07. The stock had a trading volume of 108,187 shares, compared to its average volume of 1,425,023. The firm has a market capitalization of $4,235.00, a price-to-earnings ratio of -62.82, a P/E/G ratio of 12.54 and a beta of 1.24. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.62 and a current ratio of 1.65. Teradata has a 1-year low of $27.05 and a 1-year high of $42.74.

Teradata (NYSE:TDC) last released its earnings results on Thursday, February 8th. The technology company reported $0.58 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.18. The business had revenue of $626.00 million for the quarter, compared to analyst estimates of $610.50 million. Teradata had a positive return on equity of 15.54% and a negative net margin of 3.11%. The company’s revenue for the quarter was up .0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.67 earnings per share. analysts expect that Teradata will post 0.93 earnings per share for the current fiscal year.

Teradata declared that its Board of Directors has authorized a share buyback program on Thursday, February 8th that allows the company to buyback $310.00 million in outstanding shares. This buyback authorization allows the technology company to buy shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

In other Teradata news, CFO Mark Culhane acquired 4,500 shares of the company’s stock in a transaction that occurred on Friday, December 1st. The shares were purchased at an average price of $37.66 per share, with a total value of $169,470.00. Following the completion of the acquisition, the chief financial officer now directly owns 29,924 shares of the company’s stock, valued at approximately $1,126,937.84. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.73% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. PNC Financial Services Group Inc. boosted its position in Teradata by 0.4% during the second quarter. PNC Financial Services Group Inc. now owns 7,236 shares of the technology company’s stock worth $213,000 after purchasing an additional 31 shares in the last quarter. Global X MANAGEMENT CO LLC lifted its position in shares of Teradata by 16.8% in the third quarter. Global X MANAGEMENT CO LLC now owns 10,689 shares of the technology company’s stock valued at $361,000 after acquiring an additional 1,535 shares in the last quarter. Commerzbank Aktiengesellschaft FI lifted its position in shares of Teradata by 22.7% in the third quarter. Commerzbank Aktiengesellschaft FI now owns 9,594 shares of the technology company’s stock valued at $324,000 after acquiring an additional 1,775 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of Teradata by 43.5% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,439 shares of the technology company’s stock valued at $286,000 after acquiring an additional 2,256 shares in the last quarter. Finally, Columbia Partners L L C Investment Management lifted its position in shares of Teradata by 7.1% in the third quarter. Columbia Partners L L C Investment Management now owns 44,822 shares of the technology company’s stock valued at $1,514,000 after acquiring an additional 2,968 shares in the last quarter. Institutional investors own 97.94% of the company’s stock.

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About Teradata

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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