DSM Capital Partners LLC Makes New Investment in Teradyne, Inc. $TER

Key Points

• DSM Capital Partners disclosed a new first-quarter position in Teradyne, buying 105,841 shares worth about $31.4 million. The stake represents roughly 0.6% of DSM’s portfolio and about 0.07% of Teradyne.
• Several other institutional investors also increased or initiated positions in TER, and the stock remains heavily institutionally owned at 99.77%.
• Analysts remain bullish on Teradyne, with firms like Bank of America, UBS, JPMorgan, and Cantor Fitzgerald lifting price targets; MarketBeat’s consensus rating is Moderate Buy with an average target of $390.53.

DSM Capital Partners LLC acquired a new stake in Teradyne, Inc. (NASDAQ:TER - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 105,841 shares of the company's stock, valued at approximately $31,377,000. Teradyne makes up approximately 0.6% of DSM Capital Partners LLC's portfolio, making the stock its 27th biggest holding. DSM Capital Partners LLC owned about 0.07% of Teradyne as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of TER. Integrated Wealth Concepts LLC lifted its holdings in Teradyne by 12.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 4,136 shares of the company's stock worth $342,000 after buying an additional 468 shares in the last quarter. Caxton Associates LLP bought a new stake in shares of Teradyne during the first quarter worth $297,000. Cresset Asset Management LLC lifted its stake in shares of Teradyne by 11.6% during the second quarter. Cresset Asset Management LLC now owns 6,759 shares of the company's stock valued at $608,000 after acquiring an additional 702 shares during the period. NewEdge Advisors LLC boosted its holdings in Teradyne by 467.1% in the second quarter. NewEdge Advisors LLC now owns 3,408 shares of the company's stock valued at $306,000 after acquiring an additional 2,807 shares during the last quarter. Finally, Treasurer of the State of North Carolina increased its position in Teradyne by 5.1% in the second quarter. Treasurer of the State of North Carolina now owns 75,125 shares of the company's stock worth $6,755,000 after purchasing an additional 3,651 shares during the period. 99.77% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have issued reports on TER shares. Bank of America upped their target price on shares of Teradyne from $365.00 to $525.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. UBS Group boosted their price target on shares of Teradyne from $325.00 to $440.00 and gave the stock a "buy" rating in a research note on Tuesday, April 21st. Morgan Stanley set a $387.00 price objective on shares of Teradyne in a report on Thursday, April 30th. JPMorgan Chase & Co. raised shares of Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 price objective on the stock in a research note on Thursday, April 30th. Finally, Cantor Fitzgerald lifted their target price on shares of Teradyne from $400.00 to $550.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Teradyne currently has an average rating of "Moderate Buy" and a consensus price target of $390.53.

Teradyne Trading Up 2.5%

Teradyne stock opened at $351.57 on Thursday. The firm has a market capitalization of $55.03 billion, a P/E ratio of 65.11, a PEG ratio of 0.99 and a beta of 1.74. The business has a 50-day moving average of $383.65 and a 200-day moving average of $320.90. Teradyne, Inc. has a 1 year low of $88.60 and a 1 year high of $487.91.

Teradyne (NASDAQ:TER - Get Free Report) last announced 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. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.20 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. Teradyne's revenue for the quarter was up 87.0% on a year-over-year basis. During the same period last year, the company posted $0.75 EPS. Research analysts anticipate that Teradyne, Inc. will post 7.2 EPS for the current fiscal year.

Teradyne Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were issued a $0.13 dividend. This represents a $0.52 annualized dividend and a 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 (DPR) is 9.63%.

Insider Transactions at Teradyne

In related news, CEO Gregory Stephen Smith sold 8,597 shares of the company's stock in a transaction on 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 in the company, valued at $42,192,840.60. This represents a 6.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Ryan Driscoll sold 680 shares of the firm's stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total value of $256,768.00. Following the sale, the vice president directly owned 7,665 shares in the company, valued at $2,894,304. The trade was a 8.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 14,941 shares of company stock valued at $5,444,112 over the last three months. 0.19% of the stock is currently owned by corporate insiders.

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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