Teradyne (NASDAQ:TER) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Teradyne to “Hold” from “Buy,” although broader analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $396.80.
• Teradyne reported a strong quarter, posting $2.47 in EPS and $1.33 billion in revenue, exceeding estimates and representing 103.9% year-over-year revenue growth.
• Shares opened at $354.97, well below their 52-week high of $487.91; CEO Gregory Stephen Smith also sold 4,000 shares for $1.7 million under a pre-arranged trading plan.

Teradyne (NASDAQ:TER - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Several other analysts also recently weighed in on TER. Cantor Fitzgerald reiterated an "overweight" rating and issued a $550.00 price objective on shares of Teradyne in a research report on Wednesday, July 29th. Bank of America upped their target price on shares of Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Weiss Ratings upgraded shares of Teradyne from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 20th. Evercore reaffirmed an "outperform" rating and set a $420.00 price target on shares of Teradyne in a report on Thursday, July 30th. Finally, Susquehanna boosted their price objective on Teradyne from $415.00 to $550.00 and gave the stock a "positive" rating in a research report on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $396.80.

Teradyne Price Performance

Shares of NASDAQ TER opened at $354.97 on Friday. The firm has a market capitalization of $55.50 billion, a PE ratio of 48.69, a P/E/G ratio of 0.75 and a beta of 1.78. Teradyne has a 1-year low of $109.56 and a 1-year high of $487.91. The business's fifty day moving average price is $380.37 and its two-hundred day moving average price is $356.92.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The company's revenue for the quarter was up 103.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.57 earnings per share. Equities research analysts expect that Teradyne will post 9.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the sale, the chief executive officer directly owned 112,495 shares in the company, valued at approximately $47,810,375. The trade was a 3.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TER. California State Teachers Retirement System lifted its position in Teradyne by 46,425.7% in the second quarter. California State Teachers Retirement System now owns 115,598,569 shares of the company's stock worth $55,931,212,000 after purchasing an additional 115,350,107 shares during the period. BlackRock Inc. bought a new stake in shares of Teradyne in the 2nd quarter worth $9,404,408,000. Andar Capital Management HK Ltd acquired a new stake in shares of Teradyne in the second quarter valued at $37,800,000. State Street Corp boosted its stake in Teradyne by 0.9% during the fourth quarter. State Street Corp now owns 7,078,635 shares of the company's stock valued at $1,370,141,000 after buying an additional 60,986 shares in the last quarter. Finally, Ameriprise Financial Inc. boosted its stake in Teradyne by 3.0% during the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company's stock valued at $442,413,000 after buying an additional 143,058 shares in the last quarter. Institutional investors and hedge funds own 99.77% of the company's stock.

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.

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