Teradata (TDC) Downgraded by Zacks Investment Research to Sell

Teradata (NYSE:TDC) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a note issued to investors on Tuesday.

According to Zacks, “Teradata’s fourth-quarter 2018 results were negatively impacted by the ongoing restructuring initiatives. Declining perpetual license revenues continued to hurt top-line growth. Moreover, waning consulting services revenues as Teradata realigns resources to Vantage solution remained an overhang. Sluggish spending environment in the domestic market and increasing competition continues to weigh on Teradata’s financials. Moreover, increasing expenses are a concern. Lower margins from subscription-based revenues kept margins under pressure. However, growing traction of Teradata Vantage among megadata companies is a positive. Robust growth in annual recurring revenues and increasing adoption of the company’s subscription- based model are major growth drivers. Shares have outperformed the industry in the past year.”

A number of other equities analysts have also recently issued reports on the stock. Morgan Stanley raised shares of Teradata from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $42.00 to $55.00 in a report on Tuesday, January 15th. Cowen raised their price target on shares of Teradata from $51.00 to $55.00 and gave the company an “outperform” rating in a research note on Monday. BMO Capital Markets restated a “market perform” rating and issued a $45.00 price target (up previously from $40.00) on shares of Teradata in a research note on Friday, February 8th. Finally, TheStreet upgraded shares of Teradata from a “c+” rating to a “b-” rating in a research note on Friday, February 8th. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and five have assigned a buy rating to the company. Teradata presently has an average rating of “Hold” and an average price target of $47.44.

Shares of NYSE TDC opened at $46.31 on Tuesday. The company has a current ratio of 1.42, a quick ratio of 1.39 and a debt-to-equity ratio of 0.97. Teradata has a 52-week low of $34.06 and a 52-week high of $47.22. The stock has a market capitalization of $5.47 billion, a price-to-earnings ratio of 52.63, a price-to-earnings-growth ratio of 1.53 and a beta of 1.01.

Teradata (NYSE:TDC) last issued its earnings results on Thursday, February 7th. The technology company reported $0.49 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.05. Teradata had a net margin of 1.39% and a return on equity of 18.18%. The firm had revenue of $588.00 million for the quarter, compared to analysts’ expectations of $565.94 million. During the same quarter last year, the company posted $0.58 earnings per share. Teradata’s revenue was down 6.1% on a year-over-year basis. As a group, analysts anticipate that Teradata will post 1.21 EPS for the current fiscal year.

Several large investors have recently made changes to their positions in TDC. Bank of Montreal Can increased its stake in shares of Teradata by 26.8% in the third quarter. Bank of Montreal Can now owns 78,832 shares of the technology company’s stock valued at $2,972,000 after purchasing an additional 16,658 shares during the period. Sumitomo Mitsui Asset Management Company LTD acquired a new position in shares of Teradata during the third quarter valued at approximately $250,000. MERIAN GLOBAL INVESTORS UK Ltd acquired a new position in shares of Teradata during the third quarter valued at approximately $4,198,000. Seven Eight Capital LP acquired a new position in shares of Teradata during the third quarter valued at approximately $249,000. Finally, Xact Kapitalforvaltning AB increased its stake in shares of Teradata by 9.2% during the third quarter. Xact Kapitalforvaltning AB now owns 19,004 shares of the technology company’s stock valued at $717,000 after acquiring an additional 1,600 shares during the period. Institutional investors own 97.78% of the company’s stock.

About Teradata

Teradata Corporation provides analytic data solutions and related services worldwide. The company operates through Americas Data and Analytics, and International Data and Analytics segments. Its analytic data solutions comprise software, hardware, and related business consulting and support services.

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