Stevens Capital Management LP Buys Shares of 3,628 Teradyne, Inc. (NASDAQ:TER)

Key Points

• Stevens Capital Management LP acquired 3,628 shares of Teradyne, Inc. for approximately $300,000 in the 1st quarter, reflecting growing institutional interest in the company.
• Teradyne reported a 14.3% increase in quarterly revenue year-over-year, reaching $685.70 million, with earnings per share beating estimates.
• The company announced a $1 billion stock repurchase plan, indicating management's belief that the shares are currently undervalued.

Stevens Capital Management LP purchased a new position in Teradyne, Inc. (NASDAQ:TER - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 3,628 shares of the company's stock, valued at approximately $300,000.

Several other hedge funds have also recently modified their holdings of TER. Norges Bank acquired a new stake in shares of Teradyne in the fourth quarter worth $270,989,000. Ameriprise Financial Inc. grew its position in Teradyne by 28.3% during the fourth quarter. Ameriprise Financial Inc. now owns 4,828,689 shares of the company's stock valued at $608,025,000 after buying an additional 1,065,474 shares during the period. Balyasny Asset Management L.P. grew its position in Teradyne by 142.6% during the fourth quarter. Balyasny Asset Management L.P. now owns 1,522,537 shares of the company's stock valued at $191,718,000 after buying an additional 894,849 shares during the period. Aspex Management HK Ltd grew its position in Teradyne by 35.5% during the fourth quarter. Aspex Management HK Ltd now owns 3,234,842 shares of the company's stock valued at $407,331,000 after buying an additional 847,409 shares during the period. Finally, Pictet Asset Management Holding SA grew its position in Teradyne by 38.7% during the fourth quarter. Pictet Asset Management Holding SA now owns 1,873,936 shares of the company's stock valued at $235,966,000 after buying an additional 523,296 shares during the period. Hedge funds and other institutional investors own 99.77% of the company's stock.

Teradyne Stock Performance

NASDAQ TER traded up $18.83 during trading hours on Wednesday, reaching $109.38. The company's stock had a trading volume of 11,247,709 shares, compared to its average volume of 3,367,085. The stock has a market cap of $17.55 billion, a PE ratio of 30.86, a PEG ratio of 4.03 and a beta of 1.70. Teradyne, Inc. has a fifty-two week low of $65.77 and a fifty-two week high of $144.16. The company's 50-day moving average is $88.01 and its two-hundred day moving average is $93.37.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.54 by $0.03. The business had revenue of $651.80 million for the quarter, compared to analyst estimates of $649.02 million. Teradyne had a net margin of 19.86% and a return on equity of 20.06%. The company's revenue was down 10.7% on a year-over-year basis. During the same period in the prior year, the firm posted $0.86 EPS. Equities analysts expect that Teradyne, Inc. will post 3.88 earnings per share for the current fiscal year.

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Thursday, May 22nd were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.44%. The ex-dividend date of this dividend was Thursday, May 22nd. Teradyne's payout ratio is currently 13.56%.

Teradyne declared that its board has approved a share repurchase program on Monday, April 28th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to reacquire up to 8.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on TER shares. KeyCorp reiterated a "sector weight" rating on shares of Teradyne in a report on Thursday, April 17th. Cantor Fitzgerald set a $105.00 price target on shares of Teradyne and gave the stock an "overweight" rating in a research note on Tuesday, June 24th. Susquehanna decreased their price target on shares of Teradyne from $155.00 to $133.00 and set a "positive" rating on the stock in a research note on Wednesday, April 30th. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $102.00 price target (up from $88.00) on shares of Teradyne in a research note on Thursday, July 17th. Finally, Morgan Stanley lifted their target price on shares of Teradyne from $68.00 to $74.00 and gave the stock an "underweight" rating in a research note on Wednesday, July 9th. Three analysts have rated the stock with a sell rating, five have issued a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $112.50.

About Teradyne

Teradyne, Inc designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications.