Teradyne (NASDAQ:TER) Trading Down 6.4% – Here’s What Happened

Teradyne, Inc. (NASDAQ:TER)’s share price traded down 6.4% on Friday . The company traded as low as $425.31 and last traded at $441.7770. 609,081 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 3,746,416 shares. The stock had previously closed at $471.96.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s AI-driven robotics revenue is growing quickly, with new partnerships and a key e-commerce customer expected to scale in 2026, which supports the case for additional upside. Teradyne Drives Robotics Growth With AI: A Sign for More Upside?
• Positive Sentiment: A major customer’s strong earnings report boosted investor confidence that demand tied to Teradyne’s testing and automation equipment remains solid, helping push the shares to fresh highs. Teradyne (TER) Hits All-Time High as Major Customer Reports Stellar Earnings
• Positive Sentiment: Analyst commentary remains broadly constructive, with Wall Street brokerage recommendations still leaning bullish on Teradyne. Wall Street Bulls Look Optimistic About Teradyne (TER): Should You Buy?
• Neutral Sentiment: Teradyne rings the opening bell, a visibility and branding event that is unlikely to materially affect fundamentals but can highlight the company’s market profile. Teradyne Rings the Opening Bell
• Neutral Sentiment: Teradyne expanded its India focus by naming a new country manager, a strategic operating move that may support long-term growth but is not an immediate stock catalyst. Teradyne expands India focus with new country manager
• Negative Sentiment: One article questioned whether Teradyne’s AI momentum has run too far, reflecting some concern that the stock’s strong rally may be getting ahead of fundamentals. Is Teradyne (NASDAQ:TER) AI Momentum Running Too Far?

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on TER shares. JPMorgan Chase & Co. upgraded Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price on the stock in a research report on Thursday, April 30th. UBS Group lifted their price target on Teradyne from $325.00 to $440.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Evercore set a $370.00 price objective on Teradyne in a research note on Thursday, April 30th. Robert W. Baird increased their price objective on Teradyne from $350.00 to $446.00 and gave the stock an “outperform” rating in a report on Tuesday, June 23rd. Finally, Zacks Research upgraded Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $363.87.

Teradyne Stock Performance

The stock’s 50 day moving average price is $382.07 and its 200-day moving average price is $308.73. The company has a market cap of $68.39 billion, a PE ratio of 80.90, a PEG ratio of 1.26 and a beta of 1.79.

Teradyne (NASDAQ:TER) last issued its earnings results on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, topping analysts’ consensus estimates of $2.11 by $0.45. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.20 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The firm’s revenue was up 87.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.75 EPS. On average, analysts anticipate that Teradyne, Inc. will post 7.2 EPS for the current year.

Teradyne Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a $0.13 dividend. This is an increase from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. The ex-dividend date was Thursday, May 21st. Teradyne’s dividend payout ratio (DPR) is presently 9.63%.

Insider Activity at Teradyne

In other Teradyne news, VP Ryan Driscoll sold 680 shares of the business’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares in the company, valued at approximately $2,894,304. The trade was a 8.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Stephen Smith sold 4,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $423.03, for a total value of $1,692,120.00. Following the sale, the chief executive officer directly owned 120,470 shares of the company’s stock, valued at approximately $50,962,424.10. This trade represents a 3.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,941 shares of company stock worth $5,444,112 in the last ninety days. 0.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. State Street Corp grew its position in shares of Teradyne by 0.9% in the 4th quarter. State Street Corp now owns 7,078,635 shares of the company’s stock worth $1,370,141,000 after buying an additional 60,986 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in Teradyne by 6.8% in the 3rd quarter. Ameriprise Financial Inc. now owns 5,256,857 shares of the company’s stock worth $723,600,000 after purchasing an additional 336,757 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Teradyne by 18.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company’s stock worth $813,640,000 after purchasing an additional 659,273 shares during the period. Invesco Ltd. lifted its position in shares of Teradyne by 3.5% in the 3rd quarter. Invesco Ltd. now owns 2,959,330 shares of the company’s stock worth $407,322,000 after purchasing an additional 99,864 shares during the period. Finally, Alkeon Capital Management LLC boosted its stake in shares of Teradyne by 48.6% during the 3rd quarter. Alkeon Capital Management LLC now owns 2,872,910 shares of the company’s stock valued at $395,427,000 after purchasing an additional 940,000 shares in the last quarter. 99.77% of the stock is owned by hedge funds and other institutional investors.

About Teradyne

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.