Teradyne, Inc. (NASDAQ:TER) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts remain broadly bullish: Sixteen brokerages give Teradyne an average “Moderate Buy” rating, with a consensus 12-month price target of $396.80. Recent targets range as high as $550.
• Teradyne exceeded quarterly expectations: The company reported EPS of $2.47 versus the $2.09 consensus and revenue of $1.33 billion versus $1.22 billion expected; revenue surged 103.9% year over year.
• Shares trade at a premium valuation: Teradyne opened at $387.70, with a $60.61 billion market capitalization and a P/E ratio of 53.18. Institutional investors own 99.77% of the stock, while the company pays a $0.13 quarterly dividend.

Shares of Teradyne, Inc. (NASDAQ:TER - Get Free Report) have received an average recommendation of "Moderate Buy" from the sixteen research firms that are currently covering the stock, MarketBeat.com reports. Five investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $396.80.

A number of analysts have commented on the company. Wall Street Zen upgraded Teradyne from a "hold" rating to a "buy" rating in a research report on Sunday, September 20th. The Goldman Sachs Group restated a "buy" rating and set a $465.00 price objective on shares of Teradyne in a research report on Tuesday, July 28th. Susquehanna upped their target price on Teradyne from $415.00 to $550.00 and gave the company a "positive" rating in a research note on Tuesday, June 30th. UBS Group raised their target price on Teradyne from $440.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Finally, Bank of America lifted 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.

Insider Buying and Selling

In other news, CEO Gregory Smith sold 4,000 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total value of $1,351,320.00. Following the sale, the chief executive officer directly owned 108,495 shares in the company, valued at approximately $36,652,865.85. This represents a 3.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Teradyne

Hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Teradyne during the second quarter worth $9,404,408,000. Andar Capital Management HK Ltd acquired a new stake in shares of Teradyne in the 2nd quarter valued at $37,800,000. State Street Corp boosted 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 valued at $3,527,416,000 after purchasing an additional 320,034 shares in the last quarter. Van ECK Associates Corp grew 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 during the last quarter. Finally, Norges Bank bought a new stake in shares of Teradyne in the 4th quarter worth about $398,777,000. Institutional investors own 99.77% of the company's stock.

Teradyne Price Performance

Shares of NASDAQ:TER opened at $387.70 on Friday. The stock has a market capitalization of $60.61 billion, a P/E ratio of 53.18, a P/E/G ratio of 0.81 and a beta of 1.78. The business has a 50-day moving average of $368.18 and a two-hundred day moving average of $363.49. Teradyne has a fifty-two week low of $128.59 and a fifty-two week high of $487.91.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) 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 period last year, the business posted $0.57 earnings per share. The firm's revenue was up 103.9% compared to the same quarter last year. As a group, research analysts expect that Teradyne will post 9.11 EPS for the current fiscal year.

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be given a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend is Friday, September 4th. Teradyne's dividend payout ratio is 7.13%.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s AI-focused semiconductor test business is gaining momentum. The company’s Iris 100 platform is expanding its optical testing capabilities, potentially benefiting from rising demand tied to AI chips, advanced semiconductors and data centers. Teradyne Strengthens AI Test Portfolio: Can It Beat KLAC & COHU?
• Positive Sentiment: Teradyne and GS Microelectronics agreed to establish a semiconductor test and evaluation center. The partnership could strengthen Teradyne’s presence in semiconductor manufacturing and create longer-term opportunities for equipment and testing services. GS Microelectronics and Teradyne Announce Strategic Partnership
• Positive Sentiment: Teradyne delivered a strong second quarter, with earnings of $2.47 per share versus a $2.09 consensus estimate and revenue of $1.33 billion versus expectations of $1.22 billion. Revenue more than doubled year over year, reinforcing the company’s exposure to semiconductor and AI-related growth. Teradyne Stock Rises as Revenue Doubles
• Neutral Sentiment: A report listed September short interest at zero shares and a zero-day short-interest ratio. Because the figures conflict with the description of a significant increase in short interest, the data provides little reliable insight into trading pressure.
• Negative Sentiment: The stock declined even after the strong earnings report, suggesting investors may be taking profits or demanding further upside to justify Teradyne’s elevated valuation. Coverage also noted that Teradyne’s recent decline was larger than the broader market’s, indicating continued short-term volatility. 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.