Geode Capital Management LLC Cuts Holdings in Teradyne, Inc. $TER

Key Points

• Geode Capital Management trimmed its Teradyne stake by 1.1% in the fourth quarter, but still held 4.16 million shares worth about $802.8 million, making it one of the company’s largest institutional owners.
• Teradyne reported a strong quarter, with EPS of $2.56 beating estimates and revenue of $1.28 billion topping expectations; revenue also jumped 87% from a year earlier.
• The company raised its quarterly dividend to $0.13 per share from $0.12, while analysts broadly remain positive with an average Moderate Buy rating and a $339.80 target price.

Geode Capital Management LLC decreased its position in Teradyne, Inc. (NASDAQ:TER - Free Report) by 1.1% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 4,163,538 shares of the company's stock after selling 45,263 shares during the period. Geode Capital Management LLC owned about 2.66% of Teradyne worth $802,787,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Stephens Inc. AR grew its holdings in Teradyne by 1.2% in the fourth quarter. Stephens Inc. AR now owns 3,332 shares of the company's stock valued at $645,000 after purchasing an additional 41 shares during the period. Sapient Capital LLC grew its holdings in Teradyne by 1.5% in the fourth quarter. Sapient Capital LLC now owns 2,849 shares of the company's stock valued at $560,000 after purchasing an additional 43 shares during the period. IFP Advisors Inc grew its holdings in Teradyne by 2.1% in the fourth quarter. IFP Advisors Inc now owns 2,731 shares of the company's stock valued at $529,000 after purchasing an additional 57 shares during the period. Quent Capital LLC grew its holdings in Teradyne by 3.8% in the fourth quarter. Quent Capital LLC now owns 1,738 shares of the company's stock valued at $336,000 after purchasing an additional 63 shares during the period. Finally, Huntington National Bank grew its holdings in Teradyne by 1.8% in the third quarter. Huntington National Bank now owns 3,566 shares of the company's stock valued at $491,000 after purchasing an additional 64 shares during the period. Hedge funds and other institutional investors own 99.77% of the company's stock.

Teradyne Stock Down 2.2%

Teradyne stock opened at $374.31 on Friday. Teradyne, Inc. has a 52-week low of $77.02 and a 52-week high of $422.11. The firm has a market capitalization of $58.59 billion, a price-to-earnings ratio of 69.32, a PEG ratio of 1.57 and a beta of 1.79. The company has a fifty day simple moving average of $348.35 and a 200-day simple moving average of $276.44.

Teradyne (NASDAQ:TER - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.11 by $0.45. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.20 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The company's revenue for the quarter was up 87.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.75 earnings per share. On average, research analysts anticipate that Teradyne, Inc. will post 7.09 EPS for the current fiscal year.

Teradyne Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Thursday, May 21st will be given a dividend of $0.13 per share. The ex-dividend date is Thursday, May 21st. This is a positive change from Teradyne's previous quarterly dividend of $0.12. This represents a $0.52 dividend on an annualized basis and a yield of 0.1%. Teradyne's dividend payout ratio (DPR) is 9.63%.

Insider Buying and Selling

In other news, insider Shannon John Poulin sold 1,008 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the completion of the sale, the insider owned 15,066 shares in the company, valued at $5,203,344.42. This trade represents a 6.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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. Also, CEO Gregory Stephen Smith sold 8,597 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the sale, the chief executive officer owned 124,470 shares of the company's stock, valued at $42,192,840.60. This represents a 6.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 10,941 shares of company stock worth $3,751,992. 0.19% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms have issued reports on TER. Robert W. Baird set a $350.00 price objective on shares of Teradyne in a report on Thursday, April 30th. The Goldman Sachs Group increased their price objective on shares of Teradyne from $300.00 to $350.00 and gave the company a "buy" rating in a report on Thursday, April 30th. UBS Group increased their price objective on shares of Teradyne from $325.00 to $440.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Evercore set a $370.00 price objective on shares of Teradyne in a report on Thursday, April 30th. Finally, Northland Securities reaffirmed a "market perform" rating and set a $270.00 price objective on shares of Teradyne in a report on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Teradyne has an average rating of "Moderate Buy" and an average target price of $339.80.

Teradyne 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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