Teradata Stock Tears Higher Following Bull Notes

The company reported upbeat preliminary first-quarter profit

Deputy Editor
Apr 22, 2021 at 10:53 AM
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The shares of Teradata Corporation (NYSE:TDC) are soaring today, up 30.6% to trade at $52.10 at last check, after two lofty price-target hikes. Stifel and RBC Capital both raised their price objectives to $45 -- the former from $26 and the latter from $27. The company yesterday evening announced that it expected much better-than-expected first-quarter results, which are due out after the close on May 6. 

Today's bull gap has TDC overcoming pressure from both its 20- and 30-day moving averages, and climbing back up toward its Feb. 9 seven-year high of $59.58. Year-to-date, the equity is currently up an impressive 128.6%. 

Options traders have been quick to the draw this morning, with options volume running at 54 times what's typically seen at this point. Already today 7,559 calls and 3,035 puts have crossed the tape. The May 65 call is the most popular, followed by the 50 call in the same series, with new positions being opened at both. 

On the analyst front, there is still plenty of room for upgrades that could push the security even higher. Of the seven analysts in coverage, four carry a "hold" or worse rating on Teradata stock. Plus, the 12-month consensus price target of $41.30 marks a 22.2% discount to current levels. 

Meanwhile, short interest represents 7.8% of the stock's available float, or over three days' worth of pent-up buying power, at TDC's average pace of trading. An unwinding of these bearish bets could act as a tailwind as well. 


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