Needham Investment Management LLC Lowers Position in Teradyne, Inc. $TER

Key Points

• Needham Investment Management cut its Teradyne stake by 16.7% in the fourth quarter, selling 6,000 shares and ending with 30,000 shares worth about $5.8 million.
• Several analysts remain bullish on Teradyne, with recent target-price increases from UBS, JPMorgan, and Citigroup; the stock’s consensus rating is currently Moderate Buy.
• Teradyne reported strong quarterly results, beating EPS and revenue estimates, and it also raised its quarterly dividend from $0.12 to $0.13 per share.

Needham Investment Management LLC lowered its position in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 16.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 30,000 shares of the company's stock after selling 6,000 shares during the quarter. Needham Investment Management LLC's holdings in Teradyne were worth $5,807,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd bought a new stake in Teradyne during the 4th quarter valued at about $28,000. Davidson Capital Management Inc. purchased a new position in Teradyne in the 3rd quarter worth approximately $31,000. CYBER HORNET ETFs LLC bought a new stake in Teradyne in the 2nd quarter worth about $35,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Teradyne in the fourth quarter worth approximately $37,000. Finally, KERR FINANCIAL PLANNING Corp purchased a new position in shares of Teradyne during the third quarter valued at approximately $41,000. Hedge funds and other institutional investors own 99.77% of the company's stock.

Wall Street Analyst Weigh In

TER has been the topic of a number of research analyst reports. 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 research report on Tuesday, April 21st. Morgan Stanley set a $387.00 target price on shares of Teradyne in a research note on Thursday, April 30th. Wall Street Zen raised Teradyne from a "hold" rating to a "buy" rating in a report on Saturday, February 21st. JPMorgan Chase & Co. raised Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 target price on the stock in a report on Thursday, April 30th. Finally, Citigroup raised their target price on Teradyne from $325.00 to $400.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. 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 data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $339.80.

Insider Activity

In other news, VP Ryan Driscoll sold 680 shares of the company's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $377.60, for a total transaction of $256,768.00. Following the transaction, the vice president owned 7,665 shares in the company, valued at $2,894,304. This represents a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $355.00, for a total transaction of $232,880.00. Following the sale, the insider directly owned 15,722 shares in the company, valued at approximately $5,581,310. This 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. In the last quarter, insiders sold 10,941 shares of company stock worth $3,751,992. Insiders own 0.19% of the company's stock.

Teradyne Stock Performance

Shares of TER opened at $432.41 on Tuesday. The stock has a market capitalization of $67.69 billion, a PE ratio of 80.08, a P/E/G ratio of 1.66 and a beta of 1.79. The company's fifty day moving average is $366.69 and its 200 day moving average is $294.00. Teradyne, Inc. has a fifty-two week low of $84.12 and a fifty-two week high of $437.77.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, topping the consensus estimate of $2.11 by $0.45. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period last year, the business posted $0.75 EPS. Teradyne's quarterly revenue was up 87.0% on a year-over-year basis. As a group, research analysts forecast that Teradyne, Inc. will post 7.09 earnings per share for the current year.

Teradyne Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were paid a dividend of $0.13 per share. This is an increase from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. 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%.

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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