State Street Corp Increases Position in Teradyne, Inc. $TER

Key Points

• State Street increased its Teradyne stake by 4.6% in the second quarter, adding 320,034 shares to own approximately 4.66% of the company. Institutional investors collectively hold 99.77% of Teradyne’s stock.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $396.80; targets range from $420 to $550.
• Teradyne reported strong operating momentum, with quarterly revenue up 103.9% year over year to $1.33 billion and EPS of $2.47, exceeding expectations. The company is also expanding its AI-related opportunities through semiconductor testing and a new microLED testing platform.

State Street Corp grew its holdings in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 4.6% in the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 7,290,460 shares of the company's stock after purchasing an additional 320,034 shares during the period. State Street Corp owned approximately 4.66% of Teradyne worth $3,527,416,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in TER. Leeward Financial Partners LLC bought a new position in shares of Teradyne during the 2nd quarter valued at $3,735,000. Legal & General Group Plc bought a new stake in shares of Teradyne in the second quarter worth $656,058,000. B. Metzler seel. Sohn & Co. AG purchased a new position in Teradyne in the second quarter worth about $4,826,000. Handelsbanken Fonder AB boosted its position in Teradyne by 2.6% in the second quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company's stock worth $61,927,000 after purchasing an additional 3,250 shares during the last quarter. Finally, Zweig DiMenna Associates LLC grew its stake in shares of Teradyne by 10.0% during the 4th quarter. Zweig DiMenna Associates LLC now owns 80,629 shares of the company's stock valued at $15,607,000 after purchasing an additional 7,300 shares during the period. 99.77% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Wall Street Zen raised shares of Teradyne from a "hold" rating to a "buy" rating in a report on Sunday. Evercore reiterated an "outperform" rating and issued a $420.00 price target on shares of Teradyne in a research report on Thursday, July 30th. The Goldman Sachs Group reiterated a "buy" rating and set a $465.00 price target on shares of Teradyne in a research note on Tuesday, July 28th. Robert W. Baird reissued a "neutral" rating and set a $420.00 price objective on shares of Teradyne in a research report on Friday, August 21st. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $550.00 target price on shares of Teradyne in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $396.80.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Strategic semiconductor partnership: Teradyne and GS Microelectronics U.S. announced a multi-year agreement to establish a semiconductor test and evaluation center. The facility will combine GSME’s design and manufacturing capabilities with Teradyne’s automated test systems, targeting hyperscaler AI, automotive, silicon photonics and next-generation devices. The partnership could expand Teradyne’s customer pipeline and reinforce its position in complex-chip testing. GSME and Teradyne Announce Strategic Partnership
• Positive Sentiment: AI data-center exposure through microLED testing: Teradyne launched the Iris 100, a production-ready optical test platform for microLED devices used in optical data interconnects for AI data centers. The product gives the company exposure to growing demand for high-speed data-center connectivity and may support new revenue opportunities beyond traditional semiconductor testing. Teradyne Introduces Iris 100
• Positive Sentiment: Strong recent operating momentum: Coverage also points to Teradyne’s latest earnings strength. The company recently reported revenue growth of more than 100% year over year and earnings that exceeded analyst expectations, providing additional support for the stock’s upward move. Teradyne stock gains on MicroLED test launch and strong earnings
• Neutral Sentiment: Sector interest: The planned launch of the REX AI Chipmaking ETF, which invests in equipment manufacturers supporting AI-chip production, could increase visibility for companies such as Teradyne. However, the ETF’s launch does not directly change Teradyne’s fundamentals or guarantee incremental buying. New ETF Bets on the Machinery Behind AI Chipmaking

Insider Buying and Selling

In other news, CEO Gregory Smith sold 4,000 shares of the firm's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the transaction, the chief executive officer owned 108,495 shares in the company, valued at approximately $36,652,865.85. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by corporate insiders.

Teradyne Price Performance

NASDAQ:TER opened at $398.69 on Wednesday. The company has a market cap of $62.33 billion, a price-to-earnings ratio of 54.69, a PEG ratio of 0.77 and a beta of 1.78. Teradyne, Inc. has a 1 year low of $128.59 and a 1 year high of $487.91. The stock's 50 day simple moving average is $365.93 and its two-hundred day simple moving average is $362.09.

Teradyne (NASDAQ:TER - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.38. The firm had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The company's quarterly revenue was up 103.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.57 EPS. As a group, analysts anticipate that Teradyne, Inc. will post 9.1 EPS for the current year.

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend is Friday, September 4th. Teradyne's dividend payout ratio (DPR) is currently 7.13%.

About Teradyne

Teradyne, Inc NASDAQ: TER develops and supplies automated test equipment and industrial automation solutions. Its testing products are used by semiconductor, electronics, wireless, storage and other manufacturers to evaluate the performance and quality of components, devices and systems during production.

The company's semiconductor test business provides systems for testing logic, memory, analog and mixed-signal devices, along with related handlers and software. Teradyne also offers system and product test solutions for electronic equipment and wireless devices.

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