Teradata’s Stock Rally Coming To A Halt?

Teradata (NYSE: TDC), a database and analytics products and service provider, saw its stock rise by 10% in the last twenty-one trading days. In comparison, the broader S&P500 rose by 1.8% over the last twenty-one trading days. The company’s stock doubled in February after it announced its FY 2020 results. In FY 2020 the company’s recurring revenue grew by 7%. GAAP gross margin was 55.5% versus 50.3% in 2019. Free cash flow improved to $216 million for 2020 versus $89 million for 2019. The growth momentum continued in Q1 2021 as Public cloud annual recurring revenue increased by $79 million, or 176% y-o-y, while recurring revenue for the first quarter grew by 20% y-o-y. Now, is TDC stock poised to grow? We believe that there is a 58% chance of a decline in TDC stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on Teradata’s Stock Chances Of Rise for more details.

Five Days: TDC 14%, vs. S&P500 2.8%; Outperformed market

(1% event probability)

• Teradata’s stock rose 14% over a five day trading period ending 6/25/2021, compared to the broader market (S&P500) which rose 2.8%
• A change of 14% or more over five trading days has a 1% event probability, which has occurred 20 times out of 2518 in the last ten years

Ten Days: TDC 7.3%, vs. S&P500 0.5%; Outperformed market

(13% event probability)

• Teradata’s stock rose 7.3% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 0.5%
• A change of 7.3% or more over ten trading days has a 13% event probability, which has occurred 333 times out of 2518 in the last ten years

Twenty-One Days: TDC 10%, vs. S&P500 1.8%; Outperformed market

(13% event probability)

• Teradata’s stock rose 10% over the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 1.8%
• A change of 10% or more over twenty-one trading days has a 13% event probability, which has occurred 336 times out of 2516 in the last ten years

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