Bank of New York Mellon Corp Trims Stake in Teradyne, Inc. $TER

Key Points

• Bank of New York Mellon cut its Teradyne stake by 23.3% in the fourth quarter, selling 267,979 shares and leaving it with 879,797 shares worth about $170.3 million.
• Teradyne reported better-than-expected Q1 earnings, with EPS of $2.56 versus the $2.11 estimate and revenue of $1.28 billion, up 87% year over year.
• The company also raised its quarterly dividend to $0.13 per share, while analysts remain broadly positive with several price-target hikes and a consensus rating of Moderate Buy.

Bank of New York Mellon Corp trimmed its stake in Teradyne, Inc. (NASDAQ:TER - Free Report) by 23.3% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 879,797 shares of the company's stock after selling 267,979 shares during the period. Bank of New York Mellon Corp owned 0.56% of Teradyne worth $170,293,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of TER. Davidson Capital Management Inc. purchased a new stake in shares of Teradyne in the 3rd quarter worth $31,000. CYBER HORNET ETFs LLC purchased a new stake in shares of Teradyne in the 2nd quarter worth $35,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Teradyne in the 4th quarter worth $37,000. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Teradyne in the 3rd quarter worth $41,000. Finally, True Wealth Design LLC increased its stake in shares of Teradyne by 49.6% in the 4th quarter. True Wealth Design LLC now owns 211 shares of the company's stock worth $41,000 after purchasing an additional 70 shares in the last quarter. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

Teradyne Trading Down 12.0%

Shares of NASDAQ:TER opened at $357.93 on Friday. Teradyne, Inc. has a 12 month low of $82.90 and a 12 month high of $422.11. The company has a 50-day moving average price of $356.27 and a 200 day moving average price of $283.83. The company has a market cap of $56.03 billion, a price-to-earnings ratio of 66.28, a PEG ratio of 1.67 and a beta of 1.79.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, beating analysts' consensus estimates of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter last year, the firm earned $0.75 EPS. The firm's revenue for the quarter was up 87.0% compared to the same quarter last year. As a group, equities analysts forecast that Teradyne, Inc. will post 7.09 EPS for the current year.

Teradyne Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Thursday, May 21st will be paid a $0.13 dividend. The ex-dividend date of this dividend is Thursday, May 21st. This is an increase from Teradyne's previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a yield of 0.1%. Teradyne's payout ratio is 9.63%.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne is being highlighted as a beneficiary of surging AI-driven test and robotics demand, with one article noting that roughly 70% of sales are tied to AI-related activity across semiconductor test, product test, and robotics. That suggests improving growth visibility and a potential long-term tailwind for the business. Article Title
• Positive Sentiment: Zacks and other industry outlook pieces point to Teradyne as one of several electronics stocks set to benefit from investments in infrastructure and expanded capacity, reinforcing a favorable sector backdrop. Article Title
• Positive Sentiment: Another industry roundup highlighted Teradyne alongside KLA and Flex, signaling continued analyst attention on the company as a leader in semiconductor equipment and testing. Article Title
• Neutral Sentiment: A Q1 earnings comparison article reviewed Teradyne’s results versus peers, following its recent report that beat expectations and showed strong year-over-year revenue growth. This keeps focus on fundamentals, but the piece itself does not appear to add a new catalyst. Article Title
• Negative Sentiment: Teradyne was also caught in a broad chip-sector selloff tied to the AVGO earnings overhang and a stronger-than-expected jobs report, which pressured semiconductor names across the market and weighed on TER sentiment in the near term. Article Title

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Stephen Smith sold 8,597 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $338.98, for a total value of $2,914,211.06. Following the completion of the sale, the chief executive officer owned 124,470 shares of the company's stock, valued at $42,192,840.60. This trade represents a 6.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $355.00, for a total value of $232,880.00. Following the completion of the sale, the insider owned 15,722 shares in the company, valued at approximately $5,581,310. The trade was a 4.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold a total of 10,941 shares of company stock valued at $3,751,992 over the last 90 days. Insiders own 0.19% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on TER. Morgan Stanley set a $387.00 target price on shares of Teradyne in a report on Thursday, April 30th. Susquehanna boosted their price objective on Teradyne from $335.00 to $415.00 and gave the company a "positive" rating in a research report on Thursday, April 9th. JPMorgan Chase & Co. upgraded Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 price objective on the stock in a research report on Thursday, April 30th. Citigroup boosted their price objective on Teradyne from $325.00 to $400.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, Cantor Fitzgerald boosted their price objective on Teradyne from $330.00 to $400.00 and gave the company an "overweight" rating in a research report on Thursday, April 9th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $339.80.

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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