Teradyne (NASDAQ:TER) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Teradyne from “strong buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $396.80.
• Teradyne reported strong quarterly results, with earnings of $2.47 per share versus the $2.09 consensus estimate and revenue of $1.33 billion, up 103.9% year over year.
• Shares opened at $403.02, near the consensus target, while institutional investors own 99.77% of the company; CEO Gregory Smith also sold 4,000 shares under a pre-arranged trading plan.

Teradyne (NASDAQ:TER - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday, Zacks reports.

TER has been the topic of several other reports. Robert W. Baird reissued a "neutral" rating and set a $420.00 price objective on shares of Teradyne in a report on Friday, August 21st. Bank of America lifted their price objective on Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Morgan Stanley lifted their price target on Teradyne from $387.00 to $397.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Wall Street Zen cut Teradyne from a "buy" rating to a "hold" rating in a report on Monday. Finally, Susquehanna lifted their price objective on shares of Teradyne from $415.00 to $550.00 and gave the stock a "positive" rating in a research report on Tuesday, June 30th. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Teradyne has an average rating of "Moderate Buy" and an average target price of $396.80.

Teradyne Trading Up 0.4%

Shares of TER opened at $403.02 on Monday. The firm has a fifty day simple moving average of $371.63 and a two-hundred day simple moving average of $365.62. The firm has a market cap of $63.01 billion, a PE ratio of 55.28, a P/E/G ratio of 0.81 and a beta of 1.78. Teradyne has a 1-year low of $131.75 and a 1-year high of $487.91.

Teradyne (NASDAQ:TER - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.Teradyne's quarterly revenue was up 103.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.57 earnings per share. As a group, research analysts forecast that Teradyne will post 9.11 EPS for the current fiscal year.

Insider Transactions at Teradyne

In other news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the sale, the chief executive officer directly owned 108,495 shares of the company's stock, valued at approximately $36,652,865.85. The trade was a 3.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by company insiders.

Institutional Trading of Teradyne

Large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Teradyne during the second quarter worth approximately $9,404,408,000. Andar Capital Management HK Ltd bought a new position in shares of Teradyne during the 2nd quarter valued at about $37,800,000. State Street Corp grew its stake in shares of Teradyne by 4.6% in the 2nd quarter. State Street Corp now owns 7,290,460 shares of the company's stock worth $3,527,416,000 after purchasing an additional 320,034 shares during the last quarter. Van ECK Associates Corp raised its holdings in shares of Teradyne by 5.0% in the 2nd quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company's stock worth $1,261,813,000 after purchasing an additional 123,549 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Teradyne by 0.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,978,124 shares of the company's stock worth $957,096,000 after purchasing an additional 12,659 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 provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.

Teradyne's products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.

Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.

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