Hsbc Holdings PLC Trims Holdings in Teradyne, Inc. $TER

Key Points

• HSBC Holdings PLC reduced its Teradyne stake by 12% in the fourth quarter, selling 56,294 shares and ending with 412,224 shares valued at about $79.95 million.
• Teradyne delivered strong quarterly results, reporting EPS of $2.56 versus estimates of $2.11 and revenue of $1.28 billion, up 87% year over year and above expectations.
• Analysts remain constructive on TER, with multiple upgrades and higher price targets, including Cantor Fitzgerald’s move to $550; the consensus rating is currently Moderate Buy.

Hsbc Holdings PLC lowered its holdings in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 12.0% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 412,224 shares of the company's stock after selling 56,294 shares during the period. Hsbc Holdings PLC owned 0.26% of Teradyne worth $79,953,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Nordea Investment Management AB boosted its stake in shares of Teradyne by 656.4% in the fourth quarter. Nordea Investment Management AB now owns 125,312 shares of the company's stock valued at $24,554,000 after buying an additional 108,745 shares in the last quarter. Gouws Capital LLC grew its holdings in Teradyne by 96.0% during the fourth quarter. Gouws Capital LLC now owns 15,323 shares of the company's stock worth $2,966,000 after acquiring an additional 7,505 shares during the period. Assenagon Asset Management S.A. raised its position in Teradyne by 3,233.4% in the fourth quarter. Assenagon Asset Management S.A. now owns 910,023 shares of the company's stock worth $176,144,000 after acquiring an additional 882,723 shares in the last quarter. Wealthfront Advisers LLC raised its position in Teradyne by 56.0% in the fourth quarter. Wealthfront Advisers LLC now owns 29,336 shares of the company's stock worth $5,678,000 after acquiring an additional 10,526 shares in the last quarter. Finally, Merit Financial Group LLC lifted its holdings in Teradyne by 81.3% in the fourth quarter. Merit Financial Group LLC now owns 6,659 shares of the company's stock valued at $1,289,000 after acquiring an additional 2,986 shares during the period. 99.77% of the stock is owned by hedge funds and other institutional investors.

Teradyne Stock Performance

NASDAQ:TER opened at $369.09 on Friday. The company has a market capitalization of $57.78 billion, a P/E ratio of 68.35, a price-to-earnings-growth ratio of 1.07 and a beta of 1.74. The firm has a 50-day moving average price of $386.59 and a two-hundred day moving average price of $316.48. Teradyne, Inc. has a twelve month low of $88.60 and a twelve month 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 (EPS) for the quarter, beating the consensus estimate of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the prior year, the firm earned $0.75 earnings per share. The company's revenue for the quarter was up 87.0% compared to the same quarter last year. On average, equities research analysts predict that Teradyne, Inc. will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. This is a positive change from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Thursday, May 21st. Teradyne's payout ratio is presently 9.63%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on TER. Stifel Nicolaus upped their price target on shares of Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Zacks Research upgraded shares of Teradyne from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Morgan Stanley set a $387.00 price objective on shares of Teradyne in a report on Thursday, April 30th. Weiss Ratings upgraded shares of Teradyne from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, May 4th. Finally, Cantor Fitzgerald increased their target price on shares of Teradyne from $400.00 to $550.00 and gave the company an "overweight" rating in a report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Teradyne has a consensus rating of "Moderate Buy" and a consensus target price of $382.87.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Susquehanna raised its price target on Teradyne to a Street-high $550, citing stronger chip equipment spending expectations and AI-driven demand for advanced testing. Susquehanna Boosts Teradyne to a New Street High of $550 as It Lifts Chip Equipment Spending Forecast.
• Positive Sentiment: Another valuation update lifted Teradyne’s assessed fair value from $374.82 to $416.65, reflecting higher AI-related forecasts and improved expectations for semiconductor capex. Teradyne (TER) Stock Sees Fair Value Lift As Analysts Raise AI Driven Forecasts
• Positive Sentiment: Recent commentary also highlighted Teradyne’s strong run, with the stock gaining about 38% over three months on AI demand, acquisitions, and solid guidance. Should You Buy, Sell, or Hold TER Stock After a 38% Rise in 3 Months?
• Neutral Sentiment: Some market analysis says Teradyne still trades at a premium after its huge one-year rally, suggesting much of the AI automation optimism may already be reflected in the share price. Teradyne (TER) Stock Still Trades At A Premium Following AI Automation Expansion
• Negative Sentiment: Teradyne and other chip stocks sold off as the semiconductor sector weakened on fears that AI-driven chip demand may be cooling. KLA Corporation and Teradyne Stocks Trade Down, What You Need To Know
• Negative Sentiment: Broader semiconductor weakness led to a rough start to the quarter, contributing to pressure on TER alongside the sector’s two-day selloff. Chip Stocks Off to Rough Start in Third Quarter With 2-Day Skid
• Negative Sentiment: One bearish article argued TER is risky despite its rally, which may reinforce caution after the stock’s strong run. 3 Reasons TER is Risky and 1 Stock to Buy Instead

Insider Transactions at Teradyne

In related news, VP Ryan Driscoll sold 680 shares of the business's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the transaction, the vice president owned 7,665 shares of the company's stock, valued at approximately $2,894,304. The trade was a 8.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Stephen Smith sold 8,597 shares of the company's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the completion of the transaction, the chief executive officer owned 124,470 shares in the company, valued at approximately $42,192,840.60. This trade represents a 6.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders 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 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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