Is Teradata Corporation (TDC) A Good Stock To Buy?

Since Teradata Corporation (NYSE:TDC) has experienced falling interest from the aggregate hedge fund industry, logic holds that there exists a select few money managers that decided to sell off their positions entirely in the third quarter. Interestingly, First Eagle Investment Management dropped the biggest stake of the 700 funds followed by Insider Monkey, comprising close to $435.1 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dumped about $5.1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Teradata Corporation (NYSE:TDC) but similarly valued. We will take a look at EPAM Systems Inc (NYSE:EPAM), CAE, Inc. (USA) (NYSE:CAE), Black Hills Corp (NYSE:BKH), and First Industrial Realty Trust, Inc. (NYSE:FR). This group of stocks’ market values match TDC’s market value.

As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $179 million. That figure was $378 million in TDC’s case. EPAM Systems Inc (NYSE:EPAM) is the most popular stock in this table. On the other hand First Industrial Realty Trust, Inc. (NYSE:FR) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Teradata Corporation (NYSE:TDC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.