Element Capital Management LLC Purchases Shares of 30,988 Teradyne, Inc. $TER

Key Points

• Element Capital Management LLC acquired nearly 31,000 shares of Teradyne, Inc. valued at approximately $2.56 million, indicating growing institutional interest in the company.
• Teradyne announced a $1 billion share buyback program, which suggests that the company's leadership believes its stock is undervalued.
• Teradyne's latest earnings report showed a 10.7% drop in revenue compared to the previous year, although it outperformed EPS expectations by reporting $0.57 compared to the consensus estimate of $0.54.

Element Capital Management LLC bought a new stake in Teradyne, Inc. (NASDAQ:TER - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 30,988 shares of the company's stock, valued at approximately $2,560,000.

Other hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in Teradyne by 2.5% in the first quarter. Vanguard Group Inc. now owns 20,922,231 shares of the company's stock worth $1,728,176,000 after purchasing an additional 516,332 shares in the last quarter. Ameriprise Financial Inc. increased its stake in shares of Teradyne by 28.3% in the 4th quarter. Ameriprise Financial Inc. now owns 4,828,689 shares of the company's stock worth $608,025,000 after acquiring an additional 1,065,474 shares in the last quarter. Aspex Management HK Ltd increased its stake in shares of Teradyne by 35.5% in the 4th quarter. Aspex Management HK Ltd now owns 3,234,842 shares of the company's stock worth $407,331,000 after acquiring an additional 847,409 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in Teradyne by 4.6% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,957,049 shares of the company's stock valued at $244,252,000 after acquiring an additional 131,152 shares during the period. Finally, Invesco Ltd. boosted its stake in Teradyne by 16.1% during the first quarter. Invesco Ltd. now owns 2,790,898 shares of the company's stock worth $230,528,000 after acquiring an additional 387,705 shares in the last quarter. 99.77% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts have weighed in on TER shares. Morgan Stanley raised shares of Teradyne from an "underweight" rating to an "equal weight" rating and raised their target price for the company from $74.00 to $100.00 in a research note on Thursday, July 31st. Cantor Fitzgerald set a $105.00 price objective on Teradyne and gave the company an "overweight" rating in a research report on Tuesday, June 24th. The Goldman Sachs Group reiterated a "sell" rating and set a $85.00 price objective on shares of Teradyne in a research note on Wednesday, July 30th. Wall Street Zen raised Teradyne from a "sell" rating to a "hold" rating in a report on Saturday, August 16th. Finally, Susquehanna reduced their price target on Teradyne from $155.00 to $133.00 and set a "positive" rating for the company in a report on Wednesday, April 30th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $114.44.

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Stephen Smith sold 554 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $106.00, for a total transaction of $58,724.00. Following the transaction, the chief executive officer owned 96,993 shares in the company, valued at $10,281,258. This represents a 0.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.16% of the stock is owned by insiders.

Teradyne Stock Performance

Shares of TER stock traded down $0.6910 during mid-day trading on Thursday, hitting $108.8290. The company's stock had a trading volume of 694,183 shares, compared to its average volume of 3,476,857. The stock has a market cap of $17.31 billion, a price-to-earnings ratio of 37.73, a PEG ratio of 2.32 and a beta of 1.72. Teradyne, Inc. has a 52-week low of $65.77 and a 52-week high of $144.16. The business has a 50-day moving average price of $96.58 and a 200 day moving average price of $91.30.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.54 by $0.03. Teradyne had a return on equity of 18.16% and a net margin of 16.59%.The company had revenue of $651.80 million during the quarter, compared to the consensus estimate of $649.02 million. During the same period last year, the company earned $0.86 EPS. Teradyne's revenue for the quarter was down 10.7% on a year-over-year basis. Teradyne has set its Q3 2025 guidance at 0.690-0.870 EPS. Equities research analysts predict that Teradyne, Inc. will post 3.88 EPS for the current fiscal year.

Teradyne declared that its board has authorized a stock repurchase plan on Monday, April 28th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 8.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

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.