On March 14, 2025, Lynrock Lake LP (Trades, Portfolio) executed a significant transaction involving Teradata Corp, a prominent player in the data integration and analytics sector. The firm added 2,572,320 shares of Teradata Corp at a trade price of $22.69 per share. This strategic move underscores Lynrock Lake LP (Trades, Portfolio)'s confidence in Teradata Corp's potential, as the firm now holds a total of 9,416,666 shares in the company. This acquisition represents a substantial 25.54% of Lynrock Lake LP (Trades, Portfolio)'s portfolio, reflecting a strong conviction in the stock's future performance.
About Lynrock Lake LP (Trades, Portfolio)
Lynrock Lake LP (Trades, Portfolio) is a recognized investment firm based in Rye Brook, NY, with a focus on the technology and communication services sectors. The firm manages an equity portfolio valued at $778 million, with top holdings including Allot Ltd (ALLT, Financial), Teradata Corp (TDC, Financial), and Yext Inc (YEXT, Financial). Lynrock Lake LP (Trades, Portfolio)'s investment strategy is characterized by a keen interest in companies that demonstrate potential for growth and innovation within their respective industries.
Details of the Teradata Corp Transaction
The recent transaction increased Lynrock Lake LP (Trades, Portfolio)'s total holdings in Teradata Corp to 9,416,666 shares, which now constitute 25.54% of the firm's portfolio. This addition had a 6.98% impact on the firm's portfolio, indicating a strong belief in the stock's potential. The decision to increase holdings in Teradata Corp aligns with Lynrock Lake LP (Trades, Portfolio)'s focus on technology-driven companies that offer innovative solutions in data integration and analytics.
Teradata Corp: Company Profile
Teradata Corp, a USA-based company, is dedicated to enhancing business performance and customer experiences through data integration and analytics. The company operates in segments such as Consulting Services and Recurring Product Sales, with a market capitalization of $2.17 billion. Teradata Corp's platform provides companies with Harmonized Data, Trusted AI, Teradata VantageCloud, Teradata VantageCore, ClearScape Analytics, and Query Grid, generating the majority of its revenue from the United States.
Financial Metrics and Valuation of Teradata Corp
Teradata Corp's current stock price is $22.9, with a PE ratio of 19.57, suggesting a possible value trap according to GuruFocus valuation. The GF Value of the stock is $37.31, indicating a price to GF Value ratio of 0.61, which may warrant caution for potential investors. Despite these concerns, the company's strong [operating margin](https://www.gurufocus.com/term/operating-margin/TDC) growth of 89.30% and a [Piotroski F-Score](https://www.gurufocus.com/term/fscore/TDC) of 7 suggest some underlying strengths.
Performance and Growth Indicators
The stock has a [GF Score](https://www.gurufocus.com/term/gf-score/TDC) of 61/100, reflecting poor future performance potential, with a [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/TDC) rank of 5/10 and [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/TDC) of 6/10. Despite a strong ROE of 109.20%, the company's growth ranks are low, with a [Growth Rank](https://www.gurufocus.com/term/rank-growth/TDC) of 2/10 and a [Momentum Rank](https://www.gurufocus.com/term/rank-momentum/TDC) of 2/10. These metrics suggest that while the company has some profitable aspects, its growth potential may be limited.
Other Gurus Holding Teradata Corp
Besides Lynrock Lake LP (Trades, Portfolio), other notable investors in Teradata Corp include Joel Greenblatt (Trades, Portfolio), Jefferies Group (Trades, Portfolio), and Keeley-Teton Advisors, LLC (Trades, Portfolio). Ariel Investment, LLC holds the largest share percentage of Teradata Corp among the gurus, indicating a shared interest in the company's potential within the investment community.
Transaction Analysis
The acquisition of additional shares in Teradata Corp by Lynrock Lake LP (Trades, Portfolio) highlights the firm's strategic focus on technology-driven companies with potential for growth. This transaction not only increased the firm's stake in Teradata Corp but also had a significant impact on its portfolio, reflecting a strong belief in the company's future prospects. However, potential investors should consider the stock's valuation metrics and growth indicators before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
