ARK Investment Management LLC Acquires 320,580 Shares of Teradyne, Inc. (NASDAQ:TER)

Key Points

• ARK Investment Management LLC has increased its holdings in Teradyne, Inc. by 16.7%, now owning a total of 2,243,590 shares valued at approximately $185 million.
• Teradyne's recent quarterly earnings report showed earnings per share of $0.75, surpassing analysts' expectations of $0.61, with a revenue of $685.70 million.
• The company has also announced a $1 billion stock repurchase program, indicating that its Board believes the stock is currently undervalued.

ARK Investment Management LLC raised its holdings in Teradyne, Inc. (NASDAQ:TER - Free Report) by 16.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 2,243,590 shares of the company's stock after buying an additional 320,580 shares during the quarter. Teradyne accounts for 1.8% of ARK Investment Management LLC's investment portfolio, making the stock its 16th largest holding. ARK Investment Management LLC owned about 1.39% of Teradyne worth $185,321,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Berbice Capital Management LLC grew its stake in shares of Teradyne by 200.0% in the 1st quarter. Berbice Capital Management LLC now owns 300 shares of the company's stock valued at $25,000 after buying an additional 200 shares during the period. Strategic Investment Solutions Inc. IL bought a new position in Teradyne in the fourth quarter worth approximately $34,000. Murphy & Mullick Capital Management Corp bought a new position in Teradyne in the fourth quarter worth approximately $45,000. Sentry Investment Management LLC acquired a new stake in Teradyne in the first quarter valued at approximately $45,000. Finally, AdvisorNet Financial Inc increased its holdings in shares of Teradyne by 319.0% during the first quarter. AdvisorNet Financial Inc now owns 595 shares of the company's stock valued at $49,000 after acquiring an additional 453 shares in the last quarter. 99.77% of the stock is currently owned by institutional investors.

Teradyne Stock Down 1.3%

Shares of NASDAQ TER opened at $90.15 on Friday. The company has a market capitalization of $14.46 billion, a PE ratio of 25.47, a PEG ratio of 4.04 and a beta of 1.70. The stock's 50 day moving average price is $87.63 and its 200-day moving average price is $94.29. Teradyne, Inc. has a twelve month low of $65.77 and a twelve month high of $144.16.

Teradyne (NASDAQ:TER - Get Free Report) last posted its quarterly earnings data on Monday, April 28th. The company reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.14. The business had revenue of $685.70 million for the quarter, compared to analysts' expectations of $680.54 million. Teradyne had a return on equity of 20.06% and a net margin of 19.86%. The business's revenue was up 14.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.51 earnings per share. As a group, research analysts expect that Teradyne, Inc. will post 3.88 EPS for the current fiscal year.

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 13th. Investors of record on Thursday, May 22nd were given a dividend of $0.12 per share. The ex-dividend date of this dividend was Thursday, May 22nd. This represents a $0.48 annualized dividend and a yield of 0.53%. Teradyne's payout ratio is currently 13.56%.

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

Analyst Ratings Changes

TER has been the topic of a number of recent research reports. UBS Group increased their target price on Teradyne from $110.00 to $120.00 and gave the stock a "buy" rating in a report on Monday, July 21st. JPMorgan Chase & Co. restated a "neutral" rating and set a $102.00 price objective (up previously from $88.00) on shares of Teradyne in a report on Thursday, July 17th. Cantor Fitzgerald set a $105.00 price objective on shares of Teradyne and gave the company an "overweight" rating in a research note on Tuesday, June 24th. The Goldman Sachs Group initiated coverage on shares of Teradyne in a research report on Thursday, July 10th. They set a "sell" rating and a $80.00 target price for the company. Finally, Susquehanna dropped their price target on shares of Teradyne from $155.00 to $133.00 and set a "positive" rating on the stock in a research report on Wednesday, April 30th. Three research analysts have rated the stock with a sell rating, five have given a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $112.50.

Teradyne Company Profile

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.

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