Short sellers are heavily represented among investors in Teradata Corp. and were poised to benefit as its shares fell 7 percent after the database-management company released a disappointing earnings report.
Its shares closed at $41.80 on Thursday, the biggest drop since February and putting the stock down 4.3 percent this year.
Short interest in Teradata, the amount of uncovered short positions held by investors, represented 15 percent of the company’s outstanding shares as of April 15, the 12th-highest among stocks in the S&P 500, according to data compiled by Bloomberg. The amount of shorting reached an all-time high of 17 percent in December, data provided by Markit show.
Dayton, Ohio-based Teradata reported profit of 30 cents a share, compared with the 42-cent average estimate of analysts, according to data compiled by Bloomberg. Revenue fell 7.3 percent to $582 million, missing projections for $605.3 million as the company was hurt by currency fluctuations.
Annual profit before certain costs is now forecast to be at the low end of Teradata’s earlier range of $2.50 to $2.70 a share, the company said. Analysts on average had predicted $2.56.