Teradyne (TER) Upgraded to Buy at Zacks Investment Research

Teradyne (NYSE:TER) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The brokerage currently has a $53.00 price target on the semiconductor company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 12.84% from the stock’s previous close.

According to Zacks, “Teradyne has outperformed the industry it belongs to on a 12-month basis. The company delivered strong fourth-quarter results driven by robust performance in Semiconductor and System Test Businesses. Moreover, a recovery in the core semiconductor business (processors, MCUs and power management) will continue to boost total revenues. We believe that the company has signficant growth opportunities in the high-growth wireless test market in the long-haul. Additionally, growing memory market exposure, strong product lineup, lean cost structure and strong balance sheet are positives. Given the popularity of its products, the Universal Robots acquisition and the continuous design win momentum; the company is optimistic long-term prospects. However, volatility in the test market could be a concern in the near term.”

Several other research firms have also recently weighed in on TER. Robert W. Baird reissued a “positive” rating and issued a $48.00 price objective (up previously from $37.00) on shares of Teradyne in a research report on Friday, October 27th. Goldman Sachs Group raised Teradyne from a “neutral” rating to a “buy” rating in a research report on Tuesday, December 12th. DA Davidson boosted their price objective on Teradyne to $55.00 and gave the stock a “buy” rating in a research report on Friday. Stifel Nicolaus boosted their price objective on Teradyne from $46.00 to $54.00 and gave the stock a “buy” rating in a research report on Wednesday, January 24th. Finally, KeyCorp reissued a “buy” rating and issued a $47.00 price objective on shares of Teradyne in a research report on Friday, October 27th. Four investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. Teradyne has a consensus rating of “Buy” and a consensus price target of $47.45.

Shares of Teradyne (NYSE:TER) traded down $0.73 during trading on Monday, reaching $46.97. The company had a trading volume of 1,740,927 shares, compared to its average volume of 3,010,965. Teradyne has a 1-year low of $27.97 and a 1-year high of $48.53. The company has a market capitalization of $9,356.72, a P/E ratio of 36.87, a P/E/G ratio of 1.67 and a beta of 1.02. The company has a debt-to-equity ratio of 0.19, a current ratio of 5.00 and a quick ratio of 4.76.

Teradyne (NYSE:TER) last announced its quarterly earnings results on Wednesday, January 24th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.34 by $0.12. Teradyne had a return on equity of 23.37% and a net margin of 12.06%. The business had revenue of $479.00 million during the quarter, compared to the consensus estimate of $438.85 million. During the same quarter in the prior year, the company posted $0.32 earnings per share. Teradyne’s revenue was up 26.1% compared to the same quarter last year. sell-side analysts anticipate that Teradyne will post 2.38 EPS for the current fiscal year.

Teradyne declared that its Board of Directors has approved a share repurchase plan on Wednesday, January 24th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the semiconductor company to reacquire shares of its stock through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its shares are undervalued.

In related news, Director Michael A. Bradley sold 10,000 shares of the business’s stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $42.80, for a total transaction of $428,000.00. Following the sale, the director now directly owns 145,836 shares in the company, valued at approximately $6,241,780.80. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Michael A. Bradley sold 20,000 shares of the business’s stock in a transaction on Monday, November 13th. The shares were sold at an average price of $43.67, for a total value of $873,400.00. Following the sale, the director now owns 133,504 shares in the company, valued at $5,830,119.68. The disclosure for this sale can be found here. Insiders have sold a total of 120,000 shares of company stock worth $5,213,900 in the last ninety days. Insiders own 0.62% of the company’s stock.

Several large investors have recently added to or reduced their stakes in the stock. Cigna Investments Inc. New raised its stake in shares of Teradyne by 167.2% during the 4th quarter. Cigna Investments Inc. New now owns 20,600 shares of the semiconductor company’s stock valued at $862,000 after purchasing an additional 12,889 shares during the period. Delta Capital Management LLC bought a new stake in shares of Teradyne during the 4th quarter valued at $206,000. APG Asset Management N.V. raised its stake in shares of Teradyne by 170.3% during the 4th quarter. APG Asset Management N.V. now owns 1,200,800 shares of the semiconductor company’s stock valued at $41,870,000 after purchasing an additional 756,500 shares during the period. SG Americas Securities LLC raised its stake in shares of Teradyne by 140.1% during the 4th quarter. SG Americas Securities LLC now owns 63,664 shares of the semiconductor company’s stock valued at $2,666,000 after purchasing an additional 37,152 shares during the period. Finally, Flagship Harbor Advisors LLC bought a new stake in shares of Teradyne during the 4th quarter valued at $259,000. Institutional investors own 96.34% of the company’s stock.

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About Teradyne

Teradyne, Inc supplies automation equipment for test and industrial applications. The Company designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in the consumer electronics, wireless, automotive, industrial, communications, and aerospace and defense industries.

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