SAN DIEGO, CA – In a recent transaction, Margaret A. Treese, the Chief Legal Officer of Teradata Corp (NYSE:TDC), sold 5,500 shares of company stock. The transaction took place on August 29, 2024, and was disclosed in a regulatory filing with the Securities and Exchange Commission.
Treese sold the shares at an average price of $28.505, amounting to a total value of $156,777. This sale has adjusted her stake in the company, leaving her with 96,783 shares of Teradata Corp remaining in her possession.
Teradata Corp, a company specializing in database and analytics-related software and services, has its shares traded on the New York Stock Exchange under the ticker symbol TDC.
The details of the transaction were made public in the SEC filing dated September 3, 2024. It is standard practice for company insiders to report their trading activities to the SEC to ensure transparency and compliance with securities laws.
Investors often monitor insider transactions as they can provide insights into the executives’ perspective on the company's current valuation and future prospects. However, it is essential to consider that trading by insiders can be subject to various personal financial requirements and does not necessarily indicate the company's operational performance.
The stock market and potential investors will continue to observe insider activities, alongside other market data, to make informed decisions regarding their investments in Teradata Corp.
In other recent news, Teradata Corporation (NYSE:TDC), a cloud-based data analytics company, reported a 3% year-over-year decline in total Annual Recurring Revenue (ARR) in its second quarter earnings for 2024, despite a 32% growth in its cloud ARR. Analysts from TD Cowen have responded by adjusting the target price on Teradata shares from $37.00 to $29.00, maintaining a Hold rating. The company has also announced a workforce reduction of 9-10% and lowered its ARR guidance for fiscal year 2024 due to these results.
In response to a challenging macroeconomic environment and extended customer decision cycles, Teradata is implementing measures to improve execution. These recent developments include a shift in the company's financial outlook for the full year, projecting a 2-4% decline in total ARR and a 28-32% growth in cloud ARR. The company's target for $1 billion in cloud ARR has been postponed from 2025 to 2026.
The company's non-GAAP earnings per share stood at $0.64, with $39 million generated in free cash flow. However, there was a notable reduction in the company's free cash flow due to the revised stock price target, according to the TD Cowen analyst. Despite these challenges, Teradata remains confident in its cloud-first strategy and expects the fourth quarter to be the strongest of the year.
InvestingPro Insights
As Teradata Corp (NYSE:TDC) navigates the market, a blend of insider activity and financial metrics offers a glimpse into the company's position. Notably, Teradata's management has demonstrated confidence in the company's prospects through aggressive share buybacks, aligning with a high shareholder yield. This reflects a broader strategy where management's interests are closely tied with shareholder value.
Looking at the latest financial data, Teradata's market capitalization stands at $2.67 billion, with a Price/Earnings (P/E) ratio of 43.84, suggesting a premium valuation compared to the broader market. Despite a slight decline in revenue over the last twelve months, the company maintains a strong gross profit margin of 60.63%, indicative of its pricing power and cost management effectiveness.
InvestingPro Tips further highlight that analysts are optimistic about Teradata's future, with nine analysts revising their earnings expectations upwards for the upcoming period. This is a pivotal indicator for potential investors, as upward revisions typically signal a positive outlook on the company's earnings trajectory. Moreover, Teradata is expected to be profitable this year, which could be a reassuring factor for investors considering the stock.
For those interested in a deeper analysis, InvestingPro offers additional insights and tips, with a total of 13 listed for Teradata Corp. These can be accessed through the InvestingPro platform, providing a comprehensive view of the company's financial health and market potential.
As Teradata's next earnings date approaches on November 7, 2024, investors will be watching closely to see if the company can meet or exceed the positive expectations set by market analysts. The fair value estimates provided by analysts ($32) and InvestingPro ($38.69) suggest potential upside from the previous close price of $28.24, which could be an attractive entry point for investors seeking growth opportunities.
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