Primecap Management Co. CA Sells 36,560 Shares of Teradyne, Inc. (NASDAQ:TER)

Key Points

• Primecap Management Co. CA reduced its holdings in Teradyne, Inc. by 1.9%, selling 36,560 shares and retaining 1,921,690 shares valued at approximately $158.7 million.
• Several institutional investors including Vanguard Group Inc. and Ameriprise Financial Inc. have increased their stakes in Teradyne, indicating strong institutional interest in the company.
• Analyst ratings on Teradyne vary, with some firms like Wall Street Zen downgrading the stock to a "sell," while others like UBS Group maintain a "buy" rating with a target price increase.

Primecap Management Co. CA decreased its stake in Teradyne, Inc. (NASDAQ:TER - Free Report) by 1.9% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,921,690 shares of the company's stock after selling 36,560 shares during the quarter. Primecap Management Co. CA owned 1.19% of Teradyne worth $158,732,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in TER. Federated Hermes Inc. boosted its stake in Teradyne by 188.8% during the 1st quarter. Federated Hermes Inc. now owns 2,105,852 shares of the company's stock worth $173,943,000 after acquiring an additional 1,376,631 shares during the last quarter. Ameriprise Financial Inc. boosted its holdings in shares of Teradyne by 28.3% in the fourth quarter. Ameriprise Financial Inc. now owns 4,828,689 shares of the company's stock valued at $608,025,000 after buying an additional 1,065,474 shares during the period. Balyasny Asset Management L.P. raised its holdings in shares of Teradyne by 142.6% during the fourth quarter. Balyasny Asset Management L.P. now owns 1,522,537 shares of the company's stock worth $191,718,000 after acquiring an additional 894,849 shares during the period. Aspex Management HK Ltd boosted its stake in Teradyne by 35.5% in the 4th quarter. Aspex Management HK Ltd now owns 3,234,842 shares of the company's stock worth $407,331,000 after purchasing an additional 847,409 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of Teradyne by 2.5% in the first quarter. Vanguard Group Inc. now owns 20,922,231 shares of the company's stock valued at $1,728,176,000 after purchasing an additional 516,332 shares in the last quarter. Institutional investors own 99.77% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently issued reports on TER shares. UBS Group reiterated a "buy" rating and set a $130.00 price objective (up from $120.00) on shares of Teradyne in a report on Thursday, July 31st. Morgan Stanley raised shares of Teradyne from an "underweight" rating to an "equal weight" rating and raised their price target for the stock from $74.00 to $100.00 in a research note on Thursday, July 31st. Cowen reiterated a "buy" rating on shares of Teradyne in a report on Wednesday, July 30th. JPMorgan Chase & Co. restated a "neutral" rating and set a $102.00 target price (up previously from $88.00) on shares of Teradyne in a report on Thursday, July 17th. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Teradyne in a research report on Thursday, April 17th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, Teradyne has a consensus rating of "Hold" and a consensus price target of $114.44.

Teradyne Stock Up 0.9%

Shares of TER stock traded up $1.01 on Friday, reaching $107.47. The stock had a trading volume of 3,184,304 shares, compared to its average volume of 4,835,940. Teradyne, Inc. has a 12 month low of $65.77 and a 12 month high of $144.16. The firm has a market capitalization of $17.10 billion, a price-to-earnings ratio of 37.19, a P/E/G ratio of 2.23 and a beta of 1.72. The firm's 50-day moving average is $92.38 and its two-hundred day moving average is $92.05.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.03. Teradyne had a return on equity of 18.16% and a net margin of 16.59%. The firm had revenue of $651.80 million for the quarter, compared to analyst estimates of $649.02 million. During the same quarter in the prior year, the company earned $0.86 earnings per share. The business's revenue for the quarter was down 10.7% compared to the same quarter last year. On average, sell-side analysts forecast that Teradyne, Inc. will post 3.88 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Stephen Smith sold 554 shares of the firm's stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $105.73, for a total transaction of $58,574.42. Following the completion of the sale, the chief executive officer owned 97,547 shares of the company's stock, valued at $10,313,644.31. This trade represents a 0.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.16% of the company's stock.

Teradyne 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.