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Teradata Corporation (TDC) Stock Analysis

SellVALUE-TRAP 2/5Moderate Confidence

Technology · Software - Infrastructure

Earnings in 5 days (2026-05-05). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $26.42, A.R:R 1.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5; Earnings in 5 days (event risk).

Teradata provides an enterprise data analytics and AI platform across cloud, on-premises, and hybrid deployments, serving large global organizations. Revenue is primarily subscription-based (Total ARR and Public Cloud ARR). The company is transitioning from legacy perpetual... Read more

$26.42+11.1% A.UpsideScore 5.9/10#27 of 80 Software - Infrastructure
Stop $24.60Target $29.39(analyst − 13%)A.R:R 1.1:1
Analyst target$33.78+27.8%9 analysts
$29.39our TP
$26.42price
$33.78mean
$22
$49

Sell if holding. At $26.42, A.R:R 1.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5; Earnings in 5 days (event risk). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.9/10, moderate confidence.

Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 5d<=7d. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Risks
Leverage penalty (D/E 2.4): -1.5
Earnings in 5 days (event risk)
Value-trap signals (2/5): High leverage (D/E 2.4), Material insider selling (5 sells, 0.19% of cap)

Key Metrics

P/E (TTM)19.5
P/E (Fwd)9.3
Mkt Cap$2.5B
EV/EBITDA8.4
Profit Mgn7.8%
ROE71.6%
Rev Growth2.9%
Beta0.62
DividendNone
Rating analysts15

Quality Signals

Piotroski F7/9

Options Flow

P/C0.84neutral
IV87%elevated
Max Pain$18-33.8% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMSupplierFlex
    10-K Item 1A: 'we rely on Flex as a key contract manufacturer for certain on-premises hardware offerings'

Material Events(8-K, last 90d)

  • 2026-03-02Item 5.02LOW
    Melissa Fisher elected as Class I director effective March 1, 2026, per cooperation agreement with Lynrock Lake. Appointed to Audit Committee and Nominating and Governance Committee as Audit Committee Financial Expert. No departure.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
2.7
Support Resistance
3.8
Bollinger
4.2
GatesA.R:R 1.1 < 1.5@spotEARNINGS PROXIMITY 5d<=7dMomentum 5.9>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
63 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $23.86Resistance $28.07

Price Targets

$25
$29
A.Upside+11.2%
A.R:R1.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Reward/Risk 1.1:1 at current price — below 1.5:1 minimum
! EARNINGS_PROXIMITY:5d<=7d

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-05 (5d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is TDC stock a buy right now?

Sell if holding. At $26.42, A.R:R 1.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5; Earnings in 5 days (event risk). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $24.60. Score 5.9/10, moderate confidence.

What is the TDC stock price target?

Take-profit target: $29.39 (+11.1% upside). Prior stop was $24.60. Stop-loss: $24.60.

What are the risks of investing in TDC?

Leverage penalty (D/E 2.4): -1.5; Earnings in 5 days (event risk); Value-trap signals (2/5): High leverage (D/E 2.4), Material insider selling (5 sells, 0.19% of cap).

Is TDC overvalued or undervalued?

Teradata Corporation trades at a P/E of 19.5 (forward 9.3). TrendMatrix value score: 8.1/10. Verdict: Sell.

What do analysts say about TDC?

15 analysts cover TDC with a consensus score of 3.5/5. Average price target: $34.

What does Teradata Corporation do?Teradata provides an enterprise data analytics and AI platform across cloud, on-premises, and hybrid deployments,...

Teradata provides an enterprise data analytics and AI platform across cloud, on-premises, and hybrid deployments, serving large global organizations. Revenue is primarily subscription-based (Total ARR and Public Cloud ARR). The company is transitioning from legacy perpetual licensing to cloud and hybrid SaaS offerings anchored by its autonomous AI and knowledge platform.

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