Teradyne (NASDAQ:TER) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Teradyne to “buy” from “hold.” The broader analyst consensus is “Moderate Buy,” with a consensus price target of $396.80.
• Teradyne reported strong quarterly results: revenue rose 103.9% year over year to $1.33 billion, while earnings of $2.47 per share exceeded the $2.09 analyst consensus.
• Shares traded up 5.2% to $371.47, but Teradyne carries a premium valuation with a P/E ratio of 50.96. CEO Gregory Smith also sold 4,000 shares under a pre-arranged Rule 10b5-1 plan.

Teradyne (NASDAQ:TER - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Sunday, Wall Street Zen reports.

A number of other equities research analysts have also recently issued reports on TER. Morgan Stanley upped their price objective on shares of Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Susquehanna lifted their target price 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. Robert W. Baird reissued a "neutral" rating and issued a $420.00 price target on shares of Teradyne in a research note on Friday, August 21st. Bank of America boosted their price target on shares of Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd. Finally, Weiss Ratings lowered shares of Teradyne from a "buy (b)" rating to a "hold (c+)" rating in a research report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Teradyne presently has a consensus rating of "Moderate Buy" and a consensus price target of $396.80.

Teradyne Trading Up 5.2%

Shares of NASDAQ TER opened at $371.47 on Friday. The stock has a market cap of $58.08 billion, a price-to-earnings ratio of 50.96, a P/E/G ratio of 0.75 and a beta of 1.78. Teradyne has a 1-year low of $117.54 and a 1-year high of $487.91. The stock's 50-day moving average is $364.21 and its 200 day moving average is $360.64.

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, topping analysts' consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the previous year, the company posted $0.57 EPS. Teradyne's quarterly revenue was up 103.9% compared to the same quarter last year. On average, analysts forecast that Teradyne will post 9.1 EPS for the current fiscal year.

Insider Activity

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

Institutional Investors Weigh In On Teradyne

A number of large investors have recently added to or reduced their stakes in the company. Community Financial Services Group LLC purchased a new position in shares of Teradyne in the 2nd quarter valued at approximately $29,000. McIlrath & Eck LLC purchased a new stake in Teradyne in the first quarter worth $30,000. Elevation Wealth Partners LLC raised its holdings in Teradyne by 1,320.0% in the second quarter. Elevation Wealth Partners LLC now owns 71 shares of the company's stock worth $34,000 after purchasing an additional 66 shares in the last quarter. Mcdonald Partners LLC bought a new position in Teradyne in the second quarter worth $36,000. Finally, University of Texas Texas AM Investment Management Co. bought a new position in Teradyne in the fourth quarter worth $41,000. Institutional investors own 99.77% of the company's stock.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Strong earnings momentum: Teradyne’s latest reported quarter showed revenue of $1.33 billion, up 103.9% year over year and above the $1.22 billion analyst consensus. Adjusted earnings of $2.47 per share also exceeded expectations of $2.09, reinforcing the company’s exposure to growing demand for semiconductor test equipment used in AI-related production. Teradyne stock gains as Q2 revenue tops USD 1.33 billion
• Positive Sentiment: Semiconductor expansion in India: Teradyne opened a Bengaluru office to provide customer engagement, applications support, and technical training as India develops its domestic semiconductor and electronics manufacturing ecosystem. The initiative expands Teradyne’s regional presence and could create longer-term opportunities for testing equipment, although its near-term financial impact is likely limited. Teradyne opens Bengaluru office to support India chip manufacturing
• Positive Sentiment: Favorable market backdrop: Teradyne is benefiting from a broader Nasdaq and semiconductor-stock rally, with investors continuing to favor companies tied to AI infrastructure, chip testing, and factory automation. This momentum is helping reinforce the bullish narrative around TER. Teradyne stock heads into the open after a Nasdaq jump
• Neutral Sentiment: Valuation risk: Teradyne’s premium earnings valuation reflects substantial expected growth from AI-chip testing. While analysts remain broadly constructive, the shares could be sensitive to any slowdown in semiconductor demand or weaker-than-expected conversion of AI opportunities into revenue.
• Negative Sentiment: CEO insider sale: Chief Executive Gregory Smith sold 4,000 shares for approximately $1.35 million. The transaction was executed under a pre-arranged Rule 10b5-1 plan, reducing its value as a discretionary bearish signal, but insider selling may still modestly weigh on sentiment. Teradyne CEO insider sale

Teradyne Company Profile

Teradyne, Inc NASDAQ: TER develops and supplies automated test equipment and industrial automation solutions. Its testing products are used by semiconductor, electronics, wireless, storage and other manufacturers to evaluate the performance and quality of components, devices and systems during production.

The company's semiconductor test business provides systems for testing logic, memory, analog and mixed-signal devices, along with related handlers and software. Teradyne also offers system and product test solutions for electronic equipment and wireless devices.

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