Teradyne, Inc. (NASDAQ:TER) Stock Has Average Target Price of $397.73

Key Points

• Analyst sentiment is moderately positive: Of 17 analysts covering Teradyne, 12 rate it Buy or Strong Buy and five rate it Hold; the average one-year price target is $397.73. Recent calls were mixed, including target cuts and downgrades.
• Quarterly results beat expectations: Teradyne reported EPS of $2.29 versus the $2.09 consensus and revenue of $1.31 billion versus $1.27 billion expected. Revenue increased 69.8% year over year.
• The stock was reported down 5.4%, opening at $249.55. Teradyne also announced a quarterly dividend of $0.13 per share, equivalent to $0.52 annually.

Shares of Teradyne, Inc. (NASDAQ:TER - Get Free Report) have been given an average recommendation of "Moderate Buy" by the seventeen analysts that are currently covering the firm, Marketbeat Ratings reports. Five research analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $397.73.

Several equities analysts have issued reports on the stock. Weiss Ratings downgraded shares of Teradyne from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday. UBS Group cut their target price on Teradyne from $485.00 to $430.00 and set a "buy" rating on the stock in a research report on Thursday, October 29th. Cantor Fitzgerald reissued an "overweight" rating and issued a $550.00 target price on shares of Teradyne in a report on Wednesday, July 29th. Jefferies Financial Group began coverage on Teradyne in a research report on Wednesday. They issued a "buy" rating and a $284.00 target price for the company. Finally, Robert W. Baird downgraded Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 price target on the stock. in a research note on Friday, August 21st.

Insider Activity

In other news, CEO Gregory Smith sold 4,000 shares of the firm's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the transaction, the chief executive officer directly owned 104,495 shares in the company, valued at approximately $35,662,053.60. This trade represents a 3.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,000 shares of company stock worth $4,416,440 in the last 90 days. Company insiders own 0.19% of the company's stock.

Institutional Trading of Teradyne

A number of large investors have recently bought and sold shares of TER. BlackRock Inc. acquired a new position in Teradyne during the 2nd quarter worth approximately $9,404,408,000. Andar Capital Management HK Ltd purchased a new position in shares of Teradyne during the 2nd quarter worth approximately $37,800,000. Aberdeen Group plc lifted its holdings in shares of Teradyne by 3,714.7% in the 3rd quarter. Aberdeen Group plc now owns 4,654,505 shares of the company's stock valued at $1,866,038,000 after buying an additional 4,532,489 shares during the period. Bank of America Corp DE acquired a new stake in shares of Teradyne in the 2nd quarter valued at approximately $842,822,000. Finally, Legal & General Group Plc acquired a new stake in shares of Teradyne in the 2nd quarter valued at approximately $656,058,000. Institutional investors and hedge funds own 99.77% of the company's stock.

Teradyne Trading Down 5.4%

TER stock opened at $249.55 on Friday. The stock has a market cap of $38.96 billion, a P/E ratio of 28.65, a PEG ratio of 0.52 and a beta of 1.73. Teradyne has a twelve month low of $151.52 and a twelve month high of $487.91. The company's 50 day moving average is $342.61 and its two-hundred day moving average is $349.31.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.20. The business had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.27 billion. Teradyne had a net margin of 27.46% and a return on equity of 43.81%. The company's revenue for the quarter was up 69.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.85 EPS. On average, equities research analysts predict that Teradyne will post 9.41 earnings per share for the current year.

Teradyne Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 16th. Stockholders of record on Monday, November 23rd will be issued a $0.13 dividend. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. The ex-dividend date of this dividend is Monday, November 23rd. Teradyne's dividend payout ratio is presently 5.97%.

Latest Teradyne News

Investors following TER have been watching these news items:

• Positive Sentiment: Demand for testing AI chips and memory, an expanding product portfolio, and strong revenue growth are cited as strengths in Teradyne’s competition with KLA and Cohu. Teradyne Benefits From Strong Test Demand
• Neutral Sentiment: Teradyne was among several semiconductor-related stocks reported to have fallen sharply, reflecting broader weakness across the group. Semiconductor shares fall
• Negative Sentiment: ARK’s flagship fund reportedly sold its remaining Teradyne shares, a potential source of negative investor sentiment, although another ARK fund still holds shares. ARK fund exits Teradyne

About Teradyne

Teradyne, Inc. develops and supplies automated test equipment and robotics used by manufacturers around the world. Its test systems help customers evaluate the performance and reliability of semiconductor devices, electronic products, wireless components and storage products. The company's offerings include semiconductor test systems, system-level test equipment and wireless test solutions. Teradyne also serves industrial automation markets through Universal Robots, which makes collaborative robots, and Mobile Industrial Robots, which develops autonomous mobile robots for moving materials in factories and other facilities.

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