Teradyne, Inc. (NASDAQ:TER) Given Average Rating of “Moderate Buy” by Brokerages

Teradyne, Inc. (NASDAQ:TER) has earned an average recommendation of “Moderate Buy” from the sixteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation, twelve have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $390.5333.

Several equities analysts have commented on the company. Cantor Fitzgerald increased their target price on Teradyne from $400.00 to $550.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. The Goldman Sachs Group lifted their target price on shares of Teradyne from $350.00 to $465.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Zacks Research upgraded shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Stifel Nicolaus raised their price target on shares of Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a research note on Tuesday, April 28th. Finally, Robert W. Baird boosted their price objective on shares of Teradyne from $350.00 to $446.00 and gave the stock an “outperform” rating in a research note on Tuesday, June 23rd.

Insider Transactions at Teradyne

In related news, insider Shannon John Poulin sold 1,008 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $345.37, for a total value of $348,132.96. Following the sale, the insider directly owned 15,066 shares in the company, valued at $5,203,344.42. This represents a 6.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Stephen Smith sold 8,597 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the sale, the chief executive officer directly owned 124,470 shares of the company’s stock, valued at $42,192,840.60. This represents a 6.46% decrease in their position. The SEC filing for this sale provides additional information. 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 over the last ninety days. 0.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Integrated Wealth Concepts LLC raised its position in shares of Teradyne by 12.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 4,136 shares of the company’s stock worth $342,000 after acquiring an additional 468 shares in the last quarter. Caxton Associates LLP bought a new stake in shares of Teradyne during the 1st quarter valued at about $297,000. Cresset Asset Management LLC boosted its position in shares of Teradyne by 11.6% during the 2nd quarter. Cresset Asset Management LLC now owns 6,759 shares of the company’s stock valued at $608,000 after purchasing an additional 702 shares in the last quarter. NewEdge Advisors LLC grew its stake in Teradyne by 467.1% during the second quarter. NewEdge Advisors LLC now owns 3,408 shares of the company’s stock worth $306,000 after purchasing an additional 2,807 shares during the period. Finally, Treasurer of the State of North Carolina grew its stake in Teradyne by 5.1% during the second quarter. Treasurer of the State of North Carolina now owns 75,125 shares of the company’s stock worth $6,755,000 after purchasing an additional 3,651 shares during the period. Institutional investors and hedge funds own 99.77% of the company’s stock.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne is being viewed as a beneficiary of rising AI chip complexity, with its testing business increasingly tied to AI compute, photonics, robotics, and automotive semiconductors. That supports the bull case for stronger demand for advanced test equipment. Teradyne (TER) Is Rebuilding Around AI And More Demanding Chip Tests
• Positive Sentiment: Analysts are still leaning constructive ahead of the company’s next earnings report, with expectations for solid EPS growth and commentary that Teradyne could benefit from a recovery in several end markets. What to Expect From Teradyne’s Next Quarterly Earnings Report
• Neutral Sentiment: One article argues Teradyne looks expensive on near-term valuation metrics, but still attractive based on growth, with a bullish price target that implies meaningful upside if AI-related demand continues to scale. Teradyne Is Expensive At First Glance But Attractive On Growth
• Negative Sentiment: An insider sale has caught investor attention and may be contributing to some caution after the stock’s strong advance, even though insider selling does not necessarily change the business outlook. What This Teradyne Insider Sale Signals With Shares Up 250% And Earnings On Deck
• Negative Sentiment: Recent market commentary says TER fell while the broader market gained, suggesting some investors may be rotating out of the name ahead of earnings or taking profits after a large year-to-date move. Teradyne (TER) Stock Sinks As Market Gains: Here’s Why

Teradyne Trading Down 5.8%

Shares of Teradyne stock opened at $322.30 on Friday. The firm’s 50 day moving average is $382.80 and its 200 day moving average is $327.20. The firm has a market capitalization of $50.45 billion, a PE ratio of 59.69, a price-to-earnings-growth ratio of 0.99 and a beta of 1.74. Teradyne has a 1 year low of $89.18 and a 1 year high of $487.91.

Teradyne (NASDAQ:TER) last issued its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, beating analysts’ consensus estimates of $2.11 by $0.45. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.20 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The company’s quarterly revenue was up 87.0% on a year-over-year basis. During the same quarter last year, the business posted $0.75 earnings per share. As a group, research analysts anticipate that Teradyne will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were paid a $0.13 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. Teradyne’s payout ratio is currently 9.63%.

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.