Freemont Management S.A. Makes New $3.02 Million Investment in Teradyne, Inc. (NASDAQ:TER)

Key Points

• Freemont Management S.A. invested approximately $3.02 million in Teradyne, acquiring 36,600 shares, reflecting growing institutional interest in the company.
• Despite a recent decline in stock price, Teradyne's earnings results surpassed expectations, reporting $0.75 EPS and a revenue of $685.7 million for the quarter.
• Teradyne announced a $1 billion stock buyback program, indicating confidence from management regarding the company's valuation and future prospects.

Freemont Management S.A. bought a new position in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 36,600 shares of the company's stock, valued at approximately $3,023,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in TER. Berbice Capital Management LLC lifted its stake in Teradyne by 200.0% in the first quarter. Berbice Capital Management LLC now owns 300 shares of the company's stock worth $25,000 after acquiring an additional 200 shares during the period. Strategic Investment Solutions Inc. IL acquired a new position in shares of Teradyne during the fourth quarter valued at about $34,000. Murphy & Mullick Capital Management Corp acquired a new position in Teradyne in the 4th quarter worth approximately $45,000. Sentry Investment Management LLC acquired a new position in Teradyne in the 1st quarter worth approximately $45,000. Finally, AdvisorNet Financial Inc boosted its position in Teradyne by 319.0% in the 1st quarter. AdvisorNet Financial Inc now owns 595 shares of the company's stock worth $49,000 after purchasing an additional 453 shares in the last quarter. Institutional investors own 99.77% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Cantor Fitzgerald set a $105.00 target price on Teradyne and gave the company an "overweight" rating in a research report on Tuesday, June 24th. UBS Group raised their price objective on Teradyne from $110.00 to $120.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. KeyCorp reaffirmed a "sector weight" rating on shares of Teradyne in a research report on Thursday, April 17th. JPMorgan Chase & Co. reissued a "neutral" rating and set a $102.00 price objective (up from $88.00) on shares of Teradyne in a research report on Thursday, July 17th. Finally, The Goldman Sachs Group started coverage on Teradyne in a research note on Thursday, July 10th. They set a "sell" rating and a $80.00 target price for the company. Three analysts have rated the stock with a sell rating, five have issued a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $112.50.

Teradyne Stock Down 1.3%

Shares of TER traded down $1.18 during trading hours on Friday, reaching $90.15. 3,098,914 shares of the company traded hands, compared to its average volume of 3,289,845. The stock has a fifty day simple moving average of $87.63 and a 200 day simple moving average of $94.00. Teradyne, Inc. has a fifty-two week low of $65.77 and a fifty-two week high of $144.16. The stock has a market capitalization of $14.46 billion, a PE ratio of 25.47, a price-to-earnings-growth ratio of 3.99 and a beta of 1.70.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings results on Monday, April 28th. The company reported $0.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.14. The firm had revenue of $685.70 million for the quarter, compared to analyst estimates of $680.54 million. Teradyne had a return on equity of 20.06% and a net margin of 19.86%. The firm's quarterly revenue was up 14.3% on a year-over-year basis. During the same period last year, the company earned $0.51 EPS. Research analysts predict that Teradyne, Inc. will post 3.88 EPS for the current fiscal year.

Teradyne Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 13th. Investors of record on Thursday, May 22nd were issued a dividend of $0.12 per share. The ex-dividend date of this dividend was Thursday, May 22nd. This represents a $0.48 annualized dividend and a dividend yield of 0.53%. Teradyne's payout ratio is currently 13.56%.

Teradyne announced that its Board of Directors has approved a stock repurchase plan on Monday, April 28th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 8.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is 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.