Dimensional Fund Advisors LP Has $213.50 Million Stock Position in Teradyne, Inc. $TER

Key Points

• Dimensional Fund Advisors cut its Teradyne stake by 16% in the first quarter, but still held 720,661 shares worth about $213.5 million as of its latest filing.
• Teradyne reported strong quarterly results, with EPS of $2.56 beating estimates and revenue rising 87% year over year to $1.28 billion.
• Wall Street remains bullish on TER, with several firms lifting price targets and the stock carrying a Moderate Buy consensus and average target price of about $394.53.

Dimensional Fund Advisors LP lessened its position in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 16.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 720,661 shares of the company's stock after selling 137,767 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.46% of Teradyne worth $213,504,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also modified their holdings of the company. State Street Corp raised its stake in shares of Teradyne by 0.9% in the fourth quarter. State Street Corp now owns 7,078,635 shares of the company's stock valued at $1,370,141,000 after purchasing an additional 60,986 shares in the last quarter. Ameriprise Financial Inc. boosted its stake in Teradyne by 3.0% during the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company's stock worth $442,413,000 after buying an additional 143,058 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Teradyne by 18.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company's stock valued at $813,640,000 after buying an additional 659,273 shares during the period. Invesco Ltd. increased its holdings in Teradyne by 3.5% in the 3rd quarter. Invesco Ltd. now owns 2,959,330 shares of the company's stock valued at $407,322,000 after buying an additional 99,864 shares during the period. Finally, Morgan Stanley raised its stake in shares of Teradyne by 1.9% in the 4th quarter. Morgan Stanley now owns 2,442,014 shares of the company's stock valued at $472,677,000 after buying an additional 45,089 shares in the last quarter. 99.77% of the stock is currently owned by institutional investors.

Insider Activity

In related news, CEO Gregory Stephen Smith sold 4,000 shares of Teradyne stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $423.03, for a total value of $1,692,120.00. Following the completion of the transaction, the chief executive officer directly owned 120,470 shares of the company's stock, valued at $50,962,424.10. The trade was a 3.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $355.00, for a total transaction of $232,880.00. Following the transaction, the insider owned 15,722 shares in the company, valued at approximately $5,581,310. This trade represents a 4.01% decrease in their position. 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. Over the last ninety days, insiders sold 14,941 shares of company stock worth $5,444,112. 0.19% of the stock is owned by corporate insiders.

Teradyne Price Performance

Shares of TER opened at $349.92 on Friday. The company has a market capitalization of $54.78 billion, a P/E ratio of 64.80, a PEG ratio of 1.08 and a beta of 1.74. Teradyne, Inc. has a one year low of $89.18 and a one year high of $487.91. The business's 50 day simple moving average is $382.42 and its 200-day simple moving average is $332.85.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, beating analysts' consensus estimates of $2.11 by $0.45. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same period last year, the firm posted $0.75 EPS. The business's revenue was up 87.0% on a year-over-year basis. On average, sell-side analysts anticipate that Teradyne, Inc. will post 7.2 EPS for the current fiscal year.

Teradyne Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were paid a $0.13 dividend. 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 was Thursday, May 21st. Teradyne's dividend payout ratio is 9.63%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on TER. Evercore set a $370.00 target price on shares of Teradyne in a research report on Thursday, April 30th. The Goldman Sachs Group raised their price target on shares of Teradyne from $350.00 to $465.00 and gave the stock a "buy" rating in a research note on Monday, July 6th. Morgan Stanley set a $387.00 price objective on Teradyne in a report on Thursday, April 30th. UBS Group upped their price objective on Teradyne from $440.00 to $500.00 and gave the company a "buy" rating in a research note on Monday. Finally, Citigroup raised 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. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $394.53.

Teradyne Company Profile

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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