Vestcor Inc Increases Position in Teradyne, Inc. (NASDAQ:TER)

Key Points

• Vestcor Inc. increased its stake in Teradyne, Inc. by 21.9%, owning a total of 27,904 shares valued at approximately $2.3 million.
• Teradyne's recent quarterly earnings showed a net margin of 16.59% with revenues of $651.8 million, representing a 10.7% decline compared to the same quarter last year.
• The company announced a stock buyback plan for up to $1 billion, indicating the board's belief that the stock is undervalued.

Vestcor Inc boosted its position in Teradyne, Inc. (NASDAQ:TER - Free Report) by 21.9% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 27,904 shares of the company's stock after purchasing an additional 5,010 shares during the period. Vestcor Inc's holdings in Teradyne were worth $2,305,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of TER. Ameriprise Financial Inc. increased its position in Teradyne by 28.3% during the fourth quarter. Ameriprise Financial Inc. now owns 4,828,689 shares of the company's stock worth $608,025,000 after buying an additional 1,065,474 shares in the last quarter. Geode Capital Management LLC increased its position in Teradyne by 2.4% during the fourth quarter. Geode Capital Management LLC now owns 4,105,505 shares of the company's stock worth $515,665,000 after buying an additional 94,374 shares in the last quarter. Aspex Management HK Ltd increased its position in Teradyne by 35.5% during the fourth quarter. Aspex Management HK Ltd now owns 3,234,842 shares of the company's stock worth $407,331,000 after buying an additional 847,409 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in Teradyne by 4.6% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,957,049 shares of the company's stock worth $244,252,000 after buying an additional 131,152 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in Teradyne by 3.1% during the first quarter. Allspring Global Investments Holdings LLC now owns 2,466,122 shares of the company's stock worth $203,726,000 after buying an additional 75,226 shares in the last quarter. 99.77% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Teradyne

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

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Cowen reissued a "buy" rating on shares of Teradyne in a research report on Wednesday. KeyCorp restated a "sector weight" rating on shares of Teradyne in a report on Thursday, April 17th. UBS Group restated a "buy" rating and set a $130.00 price objective (up previously from $120.00) on shares of Teradyne in a report on Thursday. Stifel Nicolaus raised their price objective on Teradyne from $85.00 to $100.00 and gave the stock a "hold" rating in a report on Thursday. Finally, Morgan Stanley upgraded Teradyne from an "underweight" rating to an "equal weight" rating and raised their price objective for the stock from $74.00 to $100.00 in a report on Thursday. Two analysts have rated the stock with a sell rating, six have given a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $114.44.

Teradyne Stock Performance

Teradyne stock traded down $3.27 during midday trading on Friday, reaching $104.16. The stock had a trading volume of 4,812,201 shares, compared to its average volume of 4,507,611. Teradyne, Inc. has a twelve month low of $65.77 and a twelve month high of $144.16. The stock has a market capitalization of $16.71 billion, a PE ratio of 36.04, a price-to-earnings-growth ratio of 2.25 and a beta of 1.72. The stock's 50-day simple moving average is $89.70 and its 200 day simple moving average is $93.09.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results on Tuesday, July 29th. The company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $649.02 million. During the same quarter last year, the firm earned $0.86 earnings per share. The firm's revenue for the quarter was down 10.7% compared to the same quarter last year. Equities analysts predict 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 program on Monday, April 28th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 8.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

Teradyne Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 13th. Shareholders of record on Thursday, May 22nd were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Thursday, May 22nd. Teradyne's payout ratio is currently 16.61%.

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.