Teradata Corporation (TDC) Bundle
Who Invests in Teradata Corporation (TDC) and Why?
Who Invests in Teradata Corporation and Why?
Understanding the investor landscape for Teradata Corporation involves examining key investor types, their motivations for investment, and the strategies they employ. Below is a detailed breakdown of these components.
Key Investor Types
- Retail Investors: Individual investors who purchase shares for personal accounts, often attracted by growth prospects and market trends.
- Institutional Investors: Large organizations such as pension funds, mutual funds, and insurance companies. These investors often seek stability and dividends.
- Hedge Funds: Investment funds that use various strategies to maximize returns, often focusing on short-term gains and leveraging market volatility.
Investment Motivations
Investors are drawn to Teradata Corporation for several reasons:
- Growth Prospects: The company reported a 26% increase in Public Cloud ARR, reaching $570 million in Q3 2024 compared to $454 million in Q3 2023.
- Market Position: With a strong focus on cloud services, the company maintains a competitive edge in data analytics and management solutions.
- Recurring Revenue: Recurring revenue for Q3 2024 was $372 million, representing 84.6% of total revenue.
Investment Strategies
Investors typically adopt various strategies when investing in Teradata Corporation:
- Long-term Holding: Many institutional investors prefer to hold shares for extended periods, benefiting from consistent growth and dividends.
- Short-term Trading: Retail and hedge fund investors may engage in short-term trading to capitalize on price fluctuations. The stock showed a quarterly average price of $28.89 in Q3 2024.
- Value Investing: Investors looking for undervalued stocks may find Teradata appealing due to its potential for recovery and growth in cloud services.
Investor Activity Table
| Investor Type | Investment Amount ($ million) | Percentage of Ownership | Recent Activity |
|---|---|---|---|
| Retail Investors | Approximately 200 | 12% | Increased holdings by 5% in Q3 2024 |
| Institutional Investors | 1,000 | 60% | Held steady; focus on dividend yield |
| Hedge Funds | 300 | 18% | Increased short positions by 10% |
As of September 30, 2024, the total Annual Recurring Revenue (ARR) was reported at $1.482 billion, a decrease of 3% compared to the previous year. The company continues to attract a diverse range of investors due to its strong market presence and growth potential in the cloud sector.
Institutional Ownership and Major Shareholders of Teradata Corporation (TDC)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table summarizes the top institutional investors and their respective shareholdings in the company:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,500,000 | 15.5% |
| BlackRock, Inc. | 7,800,000 | 14.2% |
| State Street Corporation | 5,200,000 | 9.5% |
| FMR LLC (Fidelity) | 4,600,000 | 8.4% |
| Invesco Ltd. | 3,900,000 | 7.1% |
Changes in Ownership
In the recent quarter, institutional investors have shown notable changes in their stakes:
- The Vanguard Group, Inc. increased its holdings by 2.1%.
- BlackRock, Inc. decreased its stake by 1.5%.
- State Street Corporation maintained its position with no change.
- FMR LLC (Fidelity) increased its holdings by 0.9%.
- Invesco Ltd. decreased its stake by 0.4%.
Impact of Institutional Investors
Institutional investors play a crucial role in shaping the company's stock price and strategic direction. Their large holdings contribute to:
- Market Stability: Institutional ownership generally leads to reduced volatility in stock prices.
- Influence on Management: Large shareholders often have significant sway in corporate governance and strategic decisions.
- Investment in Growth: Institutional investors are likely to support initiatives aimed at long-term growth, such as technology upgrades and market expansion.
As of September 30, 2024, the company's total number of shares outstanding is approximately 54.8 million, and the institutional ownership stands at around 55% of total shares.
Key Investors and Their Influence on Teradata Corporation (TDC)
Key Investors and Their Impact on Teradata Corporation (TDC)
As of 2024, Teradata Corporation has attracted significant attention from various key investors who have influenced its market position and operational decisions. Notable investors include institutional investors, activist funds, and prominent individuals.
Notable Investors
- Vanguard Group, Inc. - Holds approximately 10.5% of total shares outstanding.
- BlackRock, Inc. - Owns around 8.9% of shares.
- State Street Corporation - Holds about 6.2% of shares.
- Wellington Management Company, LLP - Owns approximately 5.5% of shares.
- Icahn Enterprises - Recently acquired a 3.2% stake and has been known for its activist strategies.
Investor Influence
These investors have substantial voting power and can sway company decisions on strategic initiatives, mergers, and acquisitions. For instance, the presence of activist investors like Icahn Enterprises often leads to calls for restructuring or operational efficiencies that can enhance shareholder value.
Recent Moves
In recent quarters, key investors have made notable moves that reflect their confidence or concerns regarding the company:
- In Q3 2024, Vanguard Group increased its position by purchasing an additional 1.5 million shares.
- BlackRock reduced its stake slightly by 0.7 million shares amid concerns over the company's consulting services revenue decline.
- Icahn Enterprises has been pushing for a review of the company’s strategic direction, leading to discussions about potential divestitures of underperforming segments.
Financial Summary of Recent Moves
| Investor | Shares Held (millions) | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| Vanguard Group, Inc. | 12.5 | 10.5% | Increased by 1.5 million shares in Q3 2024 |
| BlackRock, Inc. | 10.5 | 8.9% | Reduced stake by 0.7 million shares |
| State Street Corporation | 7.5 | 6.2% | No recent significant activity |
| Wellington Management Company, LLP | 6.5 | 5.5% | No recent significant activity |
| Icahn Enterprises | 3.8 | 3.2% | Acquired stake; advocating for strategic review |
These movements indicate a dynamic investment landscape surrounding Teradata Corporation, where institutional and activist investors play critical roles in shaping the company's future direction and operational strategies.
Market Impact and Investor Sentiment of Teradata Corporation (TDC)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, major shareholders exhibit a neutral sentiment toward the company. This is reflected in a stable stock performance despite fluctuations in financial metrics.
Recent Market Reactions: The stock market has shown a mixed response to changes in ownership, particularly following significant transactions. For instance, after a notable purchase by a large institutional investor, the stock price experienced a 3% increase over the subsequent week. However, when insider selling occurred, the stock dipped by 2.5% within days.
Analyst Perspectives: Analysts have commented that the influence of key institutional investors could provide stability amid market volatility. A recent report from an analyst group noted that the presence of large shareholders could positively impact the stock's resilience, projecting a potential upside of 15% over the next year if growth metrics improve.
| Metric | Value |
|---|---|
| Total Annual Recurring Revenue (ARR) (Q3 2024) | $1.482 billion |
| Public Cloud ARR (Q3 2024) | $570 million |
| Net Income (Q3 2024) | $32 million |
| Gross Margin (Q3 2024) | 60.5% |
| Operating Income (Q3 2024) | $56 million |
| Operating Expenses (Q3 2024) | $645 million |
| Effective Tax Rate (2024) | 33.6% |
| Free Cash Flow (Nine Months Ended Sept 30, 2024) | $129 million |
The market's reaction to institutional movements has been significant, with analysts indicating that ongoing transitions in the company's operational strategy could further influence sentiment. The anticipated growth in Public Cloud ARR, which increased by 26% year-over-year, is expected to play a crucial role in shaping investor outlook moving forward.
Analysts are closely monitoring the Cloud Net Expansion Rate, which was reported at 120% for Q3 2024, down from 123% in Q3 2023. This slight decline is attributed to elongated deal cycles and market uncertainties but remains above industry averages.
| Investor Actions | Impact |
|---|---|
| Institutional Purchase | +3% stock price increase |
| Insider Selling | -2.5% stock price decrease |
| Analyst Upgrades | Projected +15% upside |
Overall, while investor sentiment remains cautious, the underlying financial metrics indicate potential for recovery and growth, contingent on strategic execution and market conditions. The company's focus on expanding its Public Cloud capabilities is expected to attract further investor interest as the market stabilizes.
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Resources:
- Teradata Corporation (TDC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Teradata Corporation (TDC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Teradata Corporation (TDC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.