Teradyne (NASDAQ:TER) Given New $430.00 Price Target at UBS Group

Key Points

• UBS lowered Teradyne’s price target to $430 from $485 but maintained a Buy rating, implying approximately 46.7% upside from the cited share price.
• Analyst sentiment remains positive overall: 11 analysts rate the stock Buy and five rate it Hold, producing a “Moderate Buy” consensus with an average target of $405.86.
• Teradyne reported a strong quarter, with revenue up 69.8% year over year to $1.31 billion and EPS of $2.29 beating estimates; however, shares fell to $293.06 during Thursday trading amid valuation and outlook concerns.

Teradyne (NASDAQ:TER - Get Free Report) had its price objective dropped by equities research analysts at UBS Group from $485.00 to $430.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. UBS Group's target price indicates a potential upside of 46.73% from the company's current price.

Other research analysts have also issued reports about the company. The Goldman Sachs Group set a $440.00 price objective on Teradyne in a research report on Wednesday. Weiss Ratings raised Teradyne from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 29th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $550.00 target price on shares of Teradyne in a research note on Wednesday, July 29th. Wall Street Zen upgraded Teradyne from a "hold" rating to a "buy" rating in a report on Saturday, October 24th. Finally, Zacks Research lowered Teradyne from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Eleven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Teradyne presently has an average rating of "Moderate Buy" and a consensus target price of $405.86.

Teradyne Price Performance

NASDAQ TER traded down $20.18 during mid-day trading on Thursday, hitting $293.06. The company's stock had a trading volume of 2,204,625 shares, compared to its average volume of 3,532,578. Teradyne has a 52-week low of $151.52 and a 52-week high of $487.91. The stock's fifty day simple moving average is $368.05 and its two-hundred day simple moving average is $347.75. The firm has a market capitalization of $45.82 billion, a P/E ratio of 40.26, a price-to-earnings-growth ratio of 0.62 and a beta of 1.75.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings data on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.20. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the previous year, the firm earned $0.85 earnings per share. Teradyne's revenue for the quarter was up 69.8% on a year-over-year basis. On average, equities analysts forecast that Teradyne will post 9.11 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the completion of the transaction, the chief executive officer directly owned 104,495 shares in the company, valued at approximately $35,662,053.60. This represents a 3.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 12,000 shares of company stock valued at $4,416,440. Corporate insiders own 0.19% of the company's stock.

Institutional Trading of Teradyne

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in Teradyne in the second quarter worth $9,404,408,000. State Street Corp grew its holdings 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 valued at $3,527,416,000 after buying an additional 320,034 shares during the period. Van ECK Associates Corp increased its position 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 valued at $1,261,813,000 after buying an additional 123,549 shares in the last quarter. ABS Investment Management LLC bought a new stake in shares of Teradyne in the 2nd quarter valued at $1,006,387,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Teradyne by 0.6% during 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 buying an additional 12,659 shares during the period. 99.77% of the stock is owned by institutional investors and hedge funds.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne reported third-quarter revenue of approximately $1.31 billion, up 69.8% year over year, while adjusted earnings of $2.29 per share exceeded analyst expectations of $2.09. Net income rose to $342.4 million from $119.6 million a year earlier, supported by strong semiconductor-testing demand and AI-related business. Teradyne Revenue, Profit Jump on Semiconductor Test Growth
• Positive Sentiment: Management forecast fourth-quarter revenue of $1.25 billion to $1.35 billion, implying a midpoint of $1.30 billion that was modestly above consensus estimates. The company also said AI-related revenue represented more than 60% of sales and pointed to a potential compute-market ramp by mid-2027. Teradyne Q4 Outlook
• Positive Sentiment: Northland Securities raised its fiscal 2026 EPS estimate to $9.34 from $9.25, above the current consensus estimate of $9.11, reinforcing expectations for continued earnings momentum.
• Neutral Sentiment: The earnings release marked another quarterly beat, with revenue and adjusted EPS exceeding expectations; however, the stock’s reaction indicates that investors wanted a more substantial acceleration in guidance or longer-term visibility. Teradyne Shares Fall Despite Growth
• Negative Sentiment: Teradyne’s roughly 268.6% three-year gain and elevated valuation have increased expectations. A valuation analysis argues the shares may be above fair value even with record AI demand, raising concerns about limited near-term upside and greater sensitivity to any slowdown. Teradyne May Be Above Fair Value
• Negative Sentiment: Argus lowered its price target to $382, adding to investor caution after the earnings announcement.

Teradyne Company Profile

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company's product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.