Is Teradata Corporation (TDC) an Undervalued Stock?

Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the portfolio returned 3.07% compared to a 1.32% gain for the Russell Midcap Value Index. During the quarter the company shifted its focus to beaten-down shares of well-run businesses believing that it would benefit if the market became less fearful of the business cycle. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Heartland Mid Cap Value Fund highlighted stocks like Teradata Corporation (NYSE:TDC) in the first quarter 2023 investor letter. Headquartered in San Diego, California, Teradata Corporation (NYSE:TDC) is a cloud data analytics company. On April 12, 2023, Teradata Corporation (NYSE:TDC) stock closed at $40.10 per share. One-month return of Teradata Corporation (NYSE:TDC) was 5.55%, and its shares lost 12.22% of their value over the last 52 weeks. Teradata Corporation (NYSE:TDC) has a market capitalization of $4.104 billion.

Heartland Mid Cap Value Fund made the following comment about Teradata Corporation (NYSE:TDC) in its Q1 2023 investor letter:

“Technology. We added to our existing position in Teradata Corporation (NYSE:TDC), the largest provider of enterprise data analytics for complex workloads. Companies use TDC to predict a variety of events, such as when customers might switch to rivals, when parts are about to fail, or if transactions look suspicious for fraud.

While other enterprise IT companies have been reporting decelerating results, TDC continues to progress on growing recurring revenue from the cloud. The company’s hybrid/multi-cloud offering should position it well to help customers transition to the cloud. The stock remains undervalued, with a free cash flow yield above 9%.”

Teradata Corporation (NYSE:TDC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Teradata Corporation (NYSE:TDC) at the end of the fourth quarter which was 25 in the previous quarter.

We discussed Teradata Corporation (NYSE:TDC) in another article and shared the list of best big data stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.