Morningstar Investment Management LLC Increases Stake in Teradyne, Inc. $TER

Key Points

• Morningstar Investment Management increased its Teradyne stake by 38.3% in the first quarter, bringing its holdings to 11,523 shares valued at about $3.4 million.
• Wall Street sentiment remains positive, with several firms raising price targets; Teradyne now carries an average Moderate Buy rating and a mean target of $394.53.
• Teradyne reported strong quarterly results, beating EPS and revenue estimates, and also raised its quarterly dividend from $0.12 to $0.13 per share.

Morningstar Investment Management LLC lifted its holdings in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 38.3% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 11,523 shares of the company's stock after purchasing an additional 3,191 shares during the period. Morningstar Investment Management LLC's holdings in Teradyne were worth $3,416,000 as of its most recent filing with the SEC.

Other large investors also recently added to or reduced their stakes in the company. Norges Bank bought a new position in shares of Teradyne during the fourth quarter valued at about $398,777,000. Wellington Management Group LLP boosted its holdings in Teradyne by 13,949.4% during the 3rd quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company's stock valued at $280,357,000 after acquiring an additional 2,022,389 shares during the period. Aspex Management HK Ltd purchased a new stake in Teradyne during the 4th quarter valued at about $199,723,000. Corient Private Wealth LLC boosted its holdings in Teradyne by 2,189.2% during the 4th quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company's stock valued at $208,254,000 after acquiring an additional 1,028,916 shares during the period. Finally, Rafferty Asset Management LLC grew its position in Teradyne by 65.4% during the 2nd quarter. Rafferty Asset Management LLC now owns 2,166,039 shares of the company's stock worth $194,770,000 after acquiring an additional 856,540 shares during the last quarter. Hedge funds and other institutional investors own 99.77% of the company's stock.

Wall Street Analysts Forecast Growth

TER has been the topic of a number of analyst reports. UBS Group lifted their price target on Teradyne from $440.00 to $500.00 and gave the stock a "buy" rating in a research note on Monday, July 20th. Morgan Stanley set a $387.00 target price on shares of Teradyne in a report on Thursday, April 30th. JPMorgan Chase & Co. upgraded shares of Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 price target for the company in a report on Thursday, April 30th. Robert W. Baird boosted their price target on Teradyne from $350.00 to $446.00 and gave the company an "outperform" rating in a report on Tuesday, June 23rd. Finally, The Goldman Sachs Group upped their price objective on shares of Teradyne from $350.00 to $465.00 and gave the stock a "buy" rating in a report on Monday, July 6th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Teradyne presently has an average rating of "Moderate Buy" and an average price target of $394.53.

Teradyne Stock Down 6.4%

TER opened at $349.92 on Friday. The firm has a 50 day moving average price of $382.42 and a 200-day moving average price of $332.85. The stock has a market capitalization of $54.78 billion, a price-to-earnings ratio of 64.80, a PEG ratio of 1.01 and a beta of 1.74. Teradyne, Inc. has a twelve month low of $89.18 and a twelve month high of $487.91.

Teradyne (NASDAQ:TER - Get Free Report) last posted its quarterly earnings data 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 company 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%. The firm's revenue was up 87.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.75 earnings per share. As a group, analysts expect that Teradyne, Inc. will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were given a $0.13 dividend. The ex-dividend date was Thursday, May 21st. This is an increase from Teradyne's previous quarterly dividend of $0.12. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. Teradyne's dividend payout ratio (DPR) is currently 9.63%.

Insider Transactions at Teradyne

In other news, VP Ryan Driscoll sold 680 shares of the firm's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total transaction of $256,768.00. Following the sale, the vice president directly owned 7,665 shares in the company, valued at $2,894,304. This trade represents a 8.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of Teradyne stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total transaction of $232,880.00. Following the transaction, the insider owned 15,722 shares in the company, valued at approximately $5,581,310. This trade represents a 4.01% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 14,941 shares of company stock valued at $5,444,112 over the last three months. Corporate insiders own 0.19% of the company's stock.

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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