Bank of America Corp DE Cuts Holdings in Teradyne, Inc. $TER

Key Points

• Bank of America cut its Teradyne stake by 34.2% in the first quarter, selling 565,356 shares and retaining 1.09 million shares worth about $321.9 million. Institutional investors still own 99.77% of Teradyne.
• Teradyne reported strong quarterly results, with revenue up 103.9% year over year to $1.33 billion and EPS of $2.47, beating analyst expectations. Growth was driven by demand for semiconductor testing tied to AI data centers, advanced chips and vehicles, while robotics revenue rose 33%.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and $396.80 target price, although Teradyne’s valuation remains elevated at roughly 50 times earnings. The company also raised its quarterly dividend to $0.13 per share, equivalent to a 0.1% yield.

Bank of America Corp DE lowered its stake in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 34.2% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,085,959 shares of the company's stock after selling 565,356 shares during the quarter. Bank of America Corp DE owned 0.69% of Teradyne worth $321,943,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in TER. UMB Bank n.a. lifted its stake in Teradyne by 1.8% during the fourth quarter. UMB Bank n.a. now owns 2,293 shares of the company's stock worth $444,000 after purchasing an additional 40 shares during the last quarter. Stephens Inc. AR boosted its holdings in shares of Teradyne by 1.2% in the 4th quarter. Stephens Inc. AR now owns 3,332 shares of the company's stock worth $645,000 after purchasing an additional 41 shares in the last quarter. Sapient Capital LLC increased its position in shares of Teradyne by 1.5% during the 4th quarter. Sapient Capital LLC now owns 2,849 shares of the company's stock valued at $560,000 after purchasing an additional 43 shares during the last quarter. Whittier Trust Co. raised its holdings in shares of Teradyne by 5.5% during the 1st quarter. Whittier Trust Co. now owns 827 shares of the company's stock valued at $261,000 after buying an additional 43 shares in the last quarter. Finally, Truvestments Capital LLC raised its holdings in shares of Teradyne by 3.8% during the 4th quarter. Truvestments Capital LLC now owns 1,440 shares of the company's stock valued at $279,000 after buying an additional 53 shares in the last quarter. Hedge funds and other institutional investors own 99.77% of the company's stock.

Teradyne Stock Performance

NASDAQ TER opened at $367.69 on Monday. The firm has a market cap of $57.56 billion, a PE ratio of 50.44, a price-to-earnings-growth ratio of 0.76 and a beta of 1.78. Teradyne, Inc. has a 1-year low of $102.42 and a 1-year high of $487.91. The stock has a 50-day moving average of $382.61 and a 200-day moving average of $337.87.

Teradyne (NASDAQ:TER - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The company reported $2.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.38. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.Teradyne's revenue for the quarter was up 103.9% compared to the same quarter last year. During the same period last year, the company earned $0.57 EPS. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. As a group, equities research analysts forecast that Teradyne, Inc. will post 8.86 earnings per share for the current fiscal year.

Teradyne Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. This is a boost from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Thursday, May 21st. Teradyne's payout ratio is currently 7.13%.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: AI demand produced record results: Teradyne reported second-quarter revenue of $1.33 billion, up 103.9% year over year and above the $1.22 billion analyst consensus. Adjusted earnings of $2.47 per share exceeded expectations of $2.09, while management tied the performance to rising demand for semiconductor testing associated with AI data centers, advanced chips and vehicles. TER Q2 Deep Dive: AI Demand Drives Growth Across Semiconductor Test and Robotics
• Positive Sentiment: Strong third-quarter outlook supports continued momentum: Teradyne’s projected third-quarter revenue midpoint of $1.25 billion was reportedly about 21% above analyst expectations. Increased wafer-fabrication investment, more complex chip designs and expanding memory opportunities are supporting demand for the company’s test systems. Teradyne Beats Q2 Expectations As AI Chip Demand Lifts Q3 Outlook
• Positive Sentiment: Robotics also contributed to growth: Teradyne Robotics revenue increased 33% year over year in the second quarter, adding diversification beyond semiconductor testing and reinforcing the company’s exposure to factory automation. Teradyne Robotics revenue rises 33% year over year in Q2
• Positive Sentiment: Analyst estimates and sentiment improved: Northland Securities raised its projected third- and fourth-quarter 2027 EPS to $2.05 and $1.86, respectively. Cantor Fitzgerald assigned an “Overweight” rating, while Morgan Stanley lifted its price target to $397 but retained an “Equal Weight” rating. Teradyne Earns Overweight Rating from Cantor Fitzgerald
• Neutral Sentiment: Investor consideration: The strong results have reinforced Teradyne’s AI-growth narrative, though the Morgan Stanley “Equal Weight” stance indicates that some analysts may view the improved outlook as largely reflected in the stock’s valuation.

Analyst Ratings Changes

A number of analysts recently weighed in on the company. Citigroup boosted their target price on Teradyne from $325.00 to $400.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Morgan Stanley increased their price target on shares of Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a research report on Thursday. Stifel Nicolaus lifted their price target on shares of Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. The Goldman Sachs Group restated a "buy" rating and issued a $465.00 price objective on shares of Teradyne in a report on Tuesday, July 28th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $550.00 price objective on shares of Teradyne in a research note on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, Teradyne currently has an average rating of "Moderate Buy" and a consensus target price of $396.80.

Insider Transactions at Teradyne

In other news, insider Shannon John Poulin sold 1,008 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total value of $348,132.96. Following the transaction, the insider owned 15,066 shares in the company, valued at approximately $5,203,344.42. This trade represents a 6.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Stephen Smith sold 8,597 shares of Teradyne stock in a transaction on Friday, May 15th. The stock was sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the completion of the transaction, the chief executive officer directly owned 124,470 shares in the company, valued at approximately $42,192,840.60. The trade was a 6.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 14,941 shares of company stock worth $5,444,112. Insiders own 0.19% of the company's stock.

About Teradyne

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company's product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.

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