Teradata Corp. (TDC) Given Neutral Rating at Pacific Crest
“We are positive on subscription pricing, Intelliflex and software advances. While we maintain a skeptical view on the prospects for a sustainable turnaround and a return to growth in the short run, the three areas we did come away slightly more constructive on were (1) Intelliflex, a modular off-the-shelf compute and storage system that it plans to standardize on going forward, (2) subscription offerings that could help accelerate sales cycles versus multi-million-dollar upfront commitments that it previously required, and (3) new software advances optimized to run in hybrid, private and public cloud environments. $4 billion dream elevates execution risks as investments rise in 2017. 2016 will mark the fourth consecutive year product revenue declines, making its plan to expand revenue to $4 billion in 2021 from $2.25 billion in 2016 seem overly ambitious. This is on top of a model transition from perpetual to subscription with the intent to reach a 91% recurring mix by 2021. The level of investment required to support this type of growth is our biggest concern. For example, next year the company plans to invest $100 million in operating expenses while revenue could compress 5% to 10% at the same time on a mix-shift to subscription.”,” the firm’s analyst commented.
Several other analysts also recently issued reports on the company. Cowen and Company reiterated a market perform rating on shares of Teradata Corp. in a research note on Friday. Zacks Investment Research raised Teradata Corp. from a sell rating to a hold rating in a research report on Wednesday, November 2nd. William Blair reissued a market perform rating on shares of Teradata Corp. in a research report on Friday, September 16th. Mizuho reissued a neutral rating and set a $28.00 price objective on shares of Teradata Corp. in a research report on Tuesday, August 23rd. Finally, reissued an underperform rating on shares of Teradata Corp. in a research report on Monday, August 15th. Four research analysts have rated the stock with a sell rating and thirteen have issued a hold rating to the company. The stock currently has an average rating of Hold and a consensus target price of $26.82.
Shares of Teradata Corp. (NYSE:TDC) traded up 0.11% on Friday, hitting $27.10. The stock had a trading volume of 669,401 shares. Teradata Corp. has a 1-year low of $21.98 and a 1-year high of $33.09. The stock has a market cap of $3.52 billion, a P/E ratio of 196.38 and a beta of 1.40. The firm’s 50-day moving average is $28.81 and its 200 day moving average is $28.73.
Teradata Corp. (NYSE:TDC) last released its quarterly earnings results on Thursday, October 27th. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.17. The company earned $606 million during the quarter, compared to the consensus estimate of $556.26 million. Teradata Corp. had a return on equity of 34.54% and a net margin of 4.47%. The firm’s revenue was down 8.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.60 EPS. Equities analysts forecast that Teradata Corp. will post $2.49 EPS for the current year.
In other news, EVP Oliver Ratzesberger sold 2,015 shares of the company’s stock in a transaction that occurred on Friday, September 2nd. The stock was sold at an average price of $31.62, for a total value of $63,714.30. Following the sale, the executive vice president now directly owns 37,468 shares in the company, valued at approximately $1,184,738.16. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 2.64% of the stock is owned by insiders.
Several large investors have recently added to or reduced their stakes in the stock. Retirement Systems of Alabama raised its stake in Teradata Corp. by 52.9% in the second quarter. Retirement Systems of Alabama now owns 1,051,276 shares of the company’s stock valued at $26,355,000 after buying an additional 363,809 shares in the last quarter. Geode Capital Management LLC raised its stake in Teradata Corp. by 5.5% in the first quarter. Geode Capital Management LLC now owns 1,243,967 shares of the company’s stock valued at $32,583,000 after buying an additional 65,169 shares in the last quarter. Mason Street Advisors LLC bought a new stake in Teradata Corp. during the second quarter valued at $439,000. Stoneridge Investment Partners LLC raised its stake in Teradata Corp. by 84.3% in the second quarter. Stoneridge Investment Partners LLC now owns 237,845 shares of the company’s stock valued at $5,963,000 after buying an additional 108,826 shares in the last quarter. Finally, Chicago Equity Partners LLC raised its stake in Teradata Corp. by 5.7% in the second quarter. Chicago Equity Partners LLC now owns 71,080 shares of the company’s stock valued at $1,782,000 after buying an additional 3,850 shares in the last quarter. Institutional investors own 99.75% of the company’s stock.
About Teradata Corp.
Teradata Corporation (Teradata) is a provider of analytic data platforms, marketing and analytic applications, and related services. The Company’s analytic data platforms consist of software, hardware and related business consulting and support services for data warehousing, and big data analytics. It operates in two segments: data and analytics, and marketing applications.
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