Teradyne (NASDAQ:TER) Stock Bumped Up to Buy by Wall Street Zen

Key Points

• Wall Street Zen upgraded Teradyne from “hold” to “buy,” adding to an overall “Moderate Buy” consensus from analysts, with an average price target of $396.80.
• Recent analyst targets remain broadly optimistic, ranging from $397 at Morgan Stanley to $550 at Cantor Fitzgerald and Susquehanna, although Morgan Stanley maintained an “equal weight” rating.
• Teradyne reported a strong latest quarter, with EPS of $2.47 versus the $2.09 estimate and revenue of $1.33 billion, up 103.9% year over year; however, shares opened at $308.85, well below the 52-week high of $487.91.

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

TER has been the subject of several other research reports. Morgan Stanley upped their price objective on Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Cantor Fitzgerald reiterated an "overweight" rating and set a $550.00 target price on shares of Teradyne in a research report on Wednesday, July 29th. Evercore reiterated an "outperform" rating and set a $420.00 target price on shares of Teradyne in a research report on Thursday, July 30th. The Goldman Sachs Group reissued a "buy" rating and set a $465.00 target price on shares of Teradyne in a report on Tuesday, July 28th. Finally, Susquehanna upped their price target on shares of Teradyne from $415.00 to $550.00 and gave the company a "positive" rating in a research report on Tuesday, June 30th. Eleven research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $396.80.

Teradyne Stock Performance

Shares of TER opened at $308.85 on Friday. Teradyne has a 52 week low of $144.07 and a 52 week high of $487.91. The stock has a market capitalization of $48.29 billion, a price-to-earnings ratio of 42.37, a PEG ratio of 0.62 and a beta of 1.75. The stock has a fifty day moving average of $373.22 and a 200-day moving average of $374.76.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings data 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. Teradyne had a return on equity of 39.93% and a net margin of 25.77%. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter last year, the business posted $0.57 EPS. Teradyne's revenue for the quarter was up 103.9% on a year-over-year basis. As a group, equities analysts forecast that Teradyne will post 9.11 EPS for the current year.

Insider Activity

In related news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total value of $1,365,120.00. Following the transaction, the chief executive officer directly owned 104,495 shares of the company's stock, valued at $35,662,053.60. The trade was a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,000 shares of company stock worth $4,416,440 in the last ninety days. 0.19% of the stock is owned by company insiders.

Institutional Trading of Teradyne

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. EULAV Asset Management bought a new position in Teradyne in the third quarter worth approximately $9,919,000. Robeco Schweiz AG boosted its holdings in Teradyne by 14.7% during the 3rd quarter. Robeco Schweiz AG now owns 148,153 shares of the company's stock worth $59,396,000 after acquiring an additional 18,977 shares during the last quarter. Signaturefd LLC boosted its holdings in Teradyne by 44.2% during the 3rd quarter. Signaturefd LLC now owns 1,542 shares of the company's stock worth $618,000 after acquiring an additional 473 shares during the last quarter. Simplicity Wealth LLC grew its stake in shares of Teradyne by 5.6% in the 3rd quarter. Simplicity Wealth LLC now owns 1,021 shares of the company's stock worth $409,000 after acquiring an additional 54 shares in the last quarter. Finally, Gibbs Wealth Management bought a new stake in shares of Teradyne in the 3rd quarter worth $232,000. Institutional investors and hedge funds own 99.77% of the company's stock.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Analysts remain constructive on Teradyne ahead of earnings, citing strong AI-driven demand, expanding semiconductor-test opportunities, a favorable Q3 outlook and a history of earnings beats. Should You Buy, Sell, or Hold TER Stock Before Q3 Earnings Release?
• Positive Sentiment: Teradyne is being positioned as a potentially stronger AI-component investment than AMD because of its diversified AI exposure, semiconductor-test demand and expected growth potential. TER vs. AMD: Which AI Component Supplier Stock Is the Better Buy?
• Positive Sentiment: Teradyne Robotics and Sereact are expanding their partnership to combine Sereact’s physical-AI software with Universal Robots’ collaborative arms for warehouse tasks, including automated returns handling. The deployment of hundreds of systems could improve Teradyne’s exposure to logistics and industrial automation. How Teradyne, NVIDIA & Sereact Automate Retail Returns
• Neutral Sentiment: October 27 earnings are the next major catalyst. Investors will look for confirmation that AI-related semiconductor testing is offsetting broader industry risks and supporting the company’s upbeat outlook. Teradyne stock: Results date arrives October 27
• Negative Sentiment: TER sold off alongside chip and AI stocks as investors questioned whether the sector can sustain its rebound. Reports also cited component shortages and cleanroom capacity constraints that could limit semiconductor-equipment makers’ ability to meet demand through 2027. Teradyne slumps as tech sector falls

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.

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