Stephens Investment Management Group LLC Cuts Stake in Teradyne, Inc. $TER

Key Points

• Stephens Investment Management Group LLC reduced its Teradyne stake by 28.4% in the first quarter, selling 32,074 shares and ending with 80,800 shares valued at about $23.95 million.
• Teradyne posted a strong quarterly earnings beat, with EPS of $2.56 versus $2.11 expected and revenue of $1.28 billion versus $1.20 billion expected. Revenue jumped 87% year over year, and analysts now expect full-year EPS of 7.2.
• The company recently raised its quarterly dividend from $0.12 to $0.13 per share, while Wall Street sentiment remains positive overall with multiple price target increases and an average “Moderate Buy” rating.

Stephens Investment Management Group LLC lessened its stake in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 28.4% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 80,800 shares of the company's stock after selling 32,074 shares during the period. Stephens Investment Management Group LLC owned 0.05% of Teradyne worth $23,954,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of TER. Nordea Investment Management AB boosted its stake in Teradyne by 656.4% during the fourth quarter. Nordea Investment Management AB now owns 125,312 shares of the company's stock worth $24,554,000 after buying an additional 108,745 shares during the period. Gouws Capital LLC grew its holdings in Teradyne by 96.0% during the 4th 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 in the last quarter. Assenagon Asset Management S.A. increased its position in shares of Teradyne by 3,233.4% in the 4th quarter. Assenagon Asset Management S.A. now owns 910,023 shares of the company's stock valued at $176,144,000 after purchasing an additional 882,723 shares during the last quarter. Wealthfront Advisers LLC raised its holdings in shares of Teradyne by 56.0% in the 4th quarter. Wealthfront Advisers LLC now owns 29,336 shares of the company's stock valued at $5,678,000 after purchasing an additional 10,526 shares in the last quarter. Finally, Merit Financial Group LLC lifted its position in shares of Teradyne by 81.3% during the 4th quarter. Merit Financial Group LLC now owns 6,659 shares of the company's stock worth $1,289,000 after purchasing an additional 2,986 shares during the last quarter. 99.77% of the stock is owned by hedge funds and other institutional investors.

Teradyne Stock Performance

Shares of Teradyne stock opened at $369.09 on Monday. Teradyne, Inc. has a 1 year low of $88.60 and a 1 year high of $487.91. The company's fifty day moving average is $386.59 and its two-hundred day moving average is $317.34. The company has a market capitalization of $57.78 billion, a P/E ratio of 68.35, a PEG ratio of 1.07 and a beta of 1.74.

Teradyne (NASDAQ:TER - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 31.79% and a net margin of 22.55%.The company's revenue was up 87.0% on a year-over-year basis. During the same period last year, the business posted $0.75 EPS. As a group, equities analysts expect that Teradyne, Inc. will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.1%. The ex-dividend date was Thursday, May 21st. This is a positive change from Teradyne's previous quarterly dividend of $0.12. Teradyne's payout ratio is presently 9.63%.

Insiders Place Their Bets

In related news, VP Ryan Driscoll sold 680 shares of Teradyne stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total value of $256,768.00. Following the sale, the vice president directly owned 7,665 shares in the company, valued at $2,894,304. The trade was a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of Teradyne stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total value of $348,132.96. Following the completion of the sale, the insider owned 15,066 shares in the company, valued at approximately $5,203,344.42. This trade represents a 6.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 90 days, insiders have sold 14,941 shares of company stock worth $5,444,112. Company insiders own 0.19% of the company's stock.

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

Wall Street Analyst Weigh In

Several equities analysts recently commented on TER shares. Stifel Nicolaus increased their target price on Teradyne from $325.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday, April 28th. Weiss Ratings raised Teradyne from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, May 4th. JPMorgan Chase & Co. upgraded Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 price objective on the stock in a report on Thursday, April 30th. The Goldman Sachs Group raised their target price on Teradyne from $300.00 to $350.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Finally, Evercore set a $370.00 target price on Teradyne in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Teradyne currently has an average rating of "Moderate Buy" and an average price target of $382.87.

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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