Teradyne (NASDAQ:TER) Stock Dropped to Hold by Wall Street Zen

Key Points

• Wall Street Zen downgraded Teradyne from “buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with a $396.80 price target.
• Teradyne reported strong quarterly results, with EPS of $2.47 versus the $2.09 estimate and revenue of $1.33 billion, up 103.9% year over year.
• Shares opened at $398.38, near the consensus target, and trade at a high P/E of 54.65, suggesting valuation and limited near-term upside may be concerns despite robust growth.

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

A number of other equities analysts also recently issued reports on the stock. Robert W. Baird reaffirmed a "neutral" rating and set a $420.00 price objective on shares of Teradyne in a report on Friday, August 21st. The Goldman Sachs Group reiterated a "buy" rating and issued a $465.00 target price on shares of Teradyne in a report on Tuesday, July 28th. Susquehanna raised 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. Morgan Stanley boosted their price target on shares of Teradyne from $387.00 to $397.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Finally, Weiss Ratings downgraded shares of Teradyne from a "buy (b)" rating to a "hold (c+)" rating in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Teradyne currently has a consensus rating of "Moderate Buy" and a consensus price target of $396.80.

Teradyne Stock Performance

TER stock opened at $398.38 on Monday. The business has a 50-day simple moving average of $369.70 and a two-hundred day simple moving average of $364.20. The company has a market capitalization of $62.28 billion, a P/E ratio of 54.65, a price-to-earnings-growth ratio of 0.80 and a beta of 1.78. Teradyne has a 52-week low of $131.40 and a 52-week high of $487.91.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping 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 firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the prior year, the business posted $0.57 earnings per share. The company's quarterly revenue was up 103.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Teradyne will post 9.11 earnings per share for the current fiscal year.

Insider Activity at Teradyne

In other news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction on 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 in the company, valued at $36,652,865.85. The trade was a 3.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by insiders.

Institutional Trading of Teradyne

A number of large investors have recently added to or reduced their stakes in TER. Leeward Financial Partners LLC bought a new stake in shares of Teradyne during the 2nd quarter valued at $3,735,000. Legal & General Group Plc bought a new position in Teradyne in the 2nd quarter worth about $656,058,000. B. Metzler seel. Sohn & Co. AG purchased a new position in Teradyne during the 2nd quarter valued at about $4,826,000. Handelsbanken Fonder AB boosted its position in shares of Teradyne by 2.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company's stock valued at $61,927,000 after acquiring an additional 3,250 shares during the last quarter. Finally, New York State Teachers Retirement System boosted its position in shares of Teradyne by 2.6% during the 1st quarter. New York State Teachers Retirement System now owns 125,612 shares of the company's stock valued at $37,239,000 after acquiring an additional 3,140 shares during the last quarter. Hedge funds and other institutional investors own 99.77% of the company's stock.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s second-quarter performance was substantially stronger than a year ago, with revenue up more than 100% year over year and earnings and sales exceeding analyst expectations. The results reinforce expectations for strong demand across semiconductor and data-center markets. Reflecting On Semiconductor Manufacturing Stocks’ Q2 Earnings: Teradyne
• Positive Sentiment: Teradyne is expanding its AI-focused test portfolio with the Iris 100 optical solution. The product targets growing demand for testing advanced chips and high-speed data-center components, potentially strengthening the company’s competitive position versus peers such as KLA and Cohu. Teradyne Strengthens AI Test Portfolio
• Neutral Sentiment: Analyst coverage places Teradyne’s consensus price target at approximately $396.80, suggesting limited near-term upside if the stock remains around current levels. The target is not a ratings change, but it may temper additional gains. Teradyne Consensus Price Target
• Neutral Sentiment: Teradyne was highlighted among robotics stocks to follow, keeping investor attention on automation and robotics exposure, although the report did not identify a specific new contract or financial catalyst. Robotics Stocks To Follow Today
• Negative Sentiment: The stock recently fell despite its strong quarterly results, indicating profit-taking, elevated expectations, or broader semiconductor-sector volatility. Teradyne’s high earnings multiple also leaves the shares vulnerable if AI-driven growth slows or guidance disappoints. Teradyne Stock Falls Despite Strong Q2 Results

About Teradyne

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.

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.