Tensor Edge Capital LLC Takes Position in Teradyne, Inc. $TER

Key Points

• Tensor Edge Capital LLC opened a new position in Teradyne in the fourth quarter, buying 116,000 shares worth about $22.45 million. The stake represents 6.4% of the fund’s portfolio and about 0.07% of Teradyne.
• Teradyne reported strong quarterly results, with EPS of $2.56 beating estimates and revenue of $1.28 billion also above expectations. Revenue jumped 87% from a year earlier, and analysts now expect full-year EPS of 7.09.
• The company raised its quarterly dividend to $0.13 per share from $0.12, while several analysts lifted price targets after the earnings report. Teradyne’s stock has also seen insider selling, including recent sales by its VP and CEO under pre-arranged trading plans.

Tensor Edge Capital LLC acquired a new position in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 116,000 shares of the company's stock, valued at approximately $22,453,000. Teradyne accounts for 6.4% of Tensor Edge Capital LLC's investment portfolio, making the stock its 7th biggest holding. Tensor Edge Capital LLC owned about 0.07% of Teradyne at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in TER. Root Financial Partners LLC bought a new position in Teradyne during the 3rd quarter worth $31,000. Davidson Capital Management Inc. acquired a new position in Teradyne in the third quarter valued at $31,000. CYBER HORNET ETFs LLC bought a new position in Teradyne during the second quarter worth $35,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Teradyne during the fourth quarter worth $37,000. Finally, KERR FINANCIAL PLANNING Corp bought a new position in Teradyne in the 3rd quarter valued at about $41,000. 99.77% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Teradyne news, VP Ryan Driscoll sold 680 shares of the business's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the sale, the vice president directly owned 7,665 shares of the company's stock, valued at $2,894,304. The trade was a 8.15% decrease in their position. The transaction was disclosed in a filing 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, CEO Gregory Stephen Smith sold 8,597 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the transaction, the chief executive officer directly owned 124,470 shares in the company, valued at approximately $42,192,840.60. This trade represents a 6.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.19% of the company's stock.

Teradyne Price Performance

Shares of TER stock opened at $344.34 on Thursday. The firm has a fifty day moving average price of $337.98 and a 200-day moving average price of $267.84. The company has a market cap of $53.90 billion, a price-to-earnings ratio of 63.77, a PEG ratio of 1.32 and a beta of 1.79. Teradyne, Inc. has a 1 year low of $75.99 and a 1 year high of $422.11.

Teradyne (NASDAQ:TER - Get Free Report) last announced 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 firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.20 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The company's revenue for the quarter was up 87.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.75 earnings per share. Equities research analysts expect that Teradyne, Inc. will post 7.09 EPS for the current year.

Teradyne Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.13 per share. The ex-dividend date is Thursday, May 21st. This represents a $0.52 annualized dividend and a yield of 0.2%. This is a boost from Teradyne's previous quarterly dividend of $0.12. Teradyne's dividend payout ratio (DPR) is 9.63%.

Analyst Ratings Changes

A number of analysts recently commented on TER shares. Citigroup lifted their price target on Teradyne from $325.00 to $400.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Royal Bank Of Canada set a $270.00 price target on Teradyne in a research report on Monday, February 2nd. Robert W. Baird set a $350.00 price target on shares of Teradyne in a research report on Thursday, April 30th. The Goldman Sachs Group increased their price target on shares of Teradyne from $300.00 to $350.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, Evercore set a $370.00 price target on shares of Teradyne in a report on Thursday, April 30th. One equities research 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 stock. Based on data from MarketBeat.com, Teradyne has a consensus rating of "Moderate Buy" and an average target price of $339.80.

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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