Teradata Corporation (NYSE: TDC) stock jumped 1.38% on Thursday to $44.87 against a previous-day closing price of $44.26. With 1.15 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.08 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $44.90 whereas the lowest price it dropped to was $44.13. The 52-week range on TDC shows that it touched its highest point at $57.73 and its lowest point at $28.65 during that stretch. It currently has a 1-year price target of $60.59. Beta for the stock currently stands at 0.98.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TDC was up-trending over the past week, with a rise of 1.15%, but this was down by -0.53% over a month. Three-month performance dropped to -12.52% while six-month performance rose 20.72%. The stock gained 38.57% in the past year, while it has gained 33.30% so far this year. A look at the trailing 12-month EPS for TDC yields 0.56 with Next year EPS estimates of 2.38. For the next quarter, that number is 0.43. This implies an EPS growth rate of -76.00% for this year and 20.27% for next year. EPS is expected to grow by 21.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -7.80%.
Float and Shares Shorts:
At present, 101.00 million TDC shares are outstanding with a float of 98.78 million shares on hand for trading. On Aug 14, 2023, short shares totaled 3.62 million, which was 3.62% higher than short shares on Jul 13, 2023. In addition to Mr. Stephen McMillan as the firm’s Pres, CEO & Director, Ms. Claire Bramley serves as its Chief Financial Officer.
Through their ownership of 91.91% of TDC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.67% of TDC, in contrast to 49.41% held by mutual funds. Shares owned by individuals account for 42.51%. As the largest shareholder in TDC with 10.90% of the stake, The Vanguard Group, Inc. holds 11,023,613 shares worth 11,023,613. A second-largest stockholder of TDC, BlackRock Fund Advisors, holds 9,315,360 shares, controlling over 9.21% of the firm’s shares. Columbia Management Investment Ad is the third largest shareholder in TDC, holding 6,911,619 shares or 6.84% stake. With a 3.21% stake in TDC, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 3,246,730 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.14% of TDC stock, is the second-largest Mutual Fund holder. It holds 3,170,743 shares valued at 180.26 million. Vanguard Small Cap Index Fund holds 2.59% of the stake in TDC, owning 2,622,210 shares worth 149.07 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, TDC reported revenue of $430.00M and operating income of $14.00M. The EBITDA in the recently reported quarter was $47.00M and diluted EPS was -$0.04.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TDC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TDC analysts setting a high price target of $75.00 and a low target of $46.00, the average target price over the next 12 months is $63.30. Based on these targets, TDC could surge 67.15% to reach the target high and rise by 2.52% to reach the target low. Reaching the average price target will result in a growth of 41.07% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded TDC stock several times over the past three months with 0 Buys and 5 Sells. In these transactions, 0 shares were bought while 68,065 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 41 over the past year. The total number of shares bought during that period was 861,625 while 598,074 shares were sold.