Teradyne, Inc. $TER Shares Sold by Edgestream Partners L.P.

Key Points

• Edgestream Partners cut its Teradyne holdings by 54.7% in the first quarter, selling 3,201 shares and retaining 2,655 shares valued at approximately $787,000. Despite the reduction, institutional investors and hedge funds collectively own 99.77% of Teradyne.
• Teradyne reported a strong quarter, with earnings of $2.47 per share versus the $2.09 consensus estimate and revenue of $1.33 billion, up 103.9% year over year. Analysts maintain a “Moderate Buy” consensus, with an average price target of $396.80.
• The stock’s AI, semiconductor-testing and robotics growth prospects are attracting investor interest, but its premium valuation creates risk. Teradyne trades at a P/E ratio of 55.36, while insiders sold shares worth approximately $5.44 million over the past quarter.

Edgestream Partners L.P. decreased its holdings in Teradyne, Inc. (NASDAQ:TER - Free Report) by 54.7% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,655 shares of the company's stock after selling 3,201 shares during the quarter. Edgestream Partners L.P.'s holdings in Teradyne were worth $787,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. State Street Corp raised its stake in Teradyne by 0.9% during the fourth quarter. State Street Corp now owns 7,078,635 shares of the company's stock worth $1,370,141,000 after purchasing an additional 60,986 shares during the period. Ameriprise Financial Inc. raised its holdings in Teradyne by 3.0% in the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company's stock valued at $442,413,000 after buying an additional 143,058 shares during the period. Price T Rowe Associates Inc. MD lifted its position in Teradyne by 18.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company's stock valued at $813,640,000 after buying an additional 659,273 shares in the last quarter. Invesco Ltd. lifted its position in Teradyne by 3.5% during the third quarter. Invesco Ltd. now owns 2,959,330 shares of the company's stock valued at $407,322,000 after buying an additional 99,864 shares in the last quarter. Finally, Morgan Stanley lifted its position in Teradyne by 1.9% during the fourth quarter. Morgan Stanley now owns 2,442,014 shares of the company's stock valued at $472,677,000 after buying an additional 45,089 shares in the last quarter. Institutional investors and hedge funds own 99.77% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on TER shares. Cantor Fitzgerald reissued an "overweight" rating and issued a $550.00 price objective on shares of Teradyne in a research report on Wednesday, July 29th. Bank of America upped their target price on Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Robert W. Baird set a $420.00 target price on Teradyne in a research note on Thursday, July 30th. UBS Group boosted their price target on Teradyne from $440.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Finally, Citigroup lifted their price target on shares of Teradyne from $325.00 to $400.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average 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: AI-driven growth outlook: Teradyne’s second-quarter earnings discussion emphasized multiyear growth potential from artificial intelligence, semiconductor testing, market-share gains and an expanding test market. Its broad exposure to AI infrastructure is supporting investor optimism. TER Q2 Earnings Call Centers on AI-Led Multiyear Growth
• Positive Sentiment: Strong financial performance: Teradyne reported record second-quarter results, including earnings of $2.47 per share versus the $2.09 consensus estimate and revenue of $1.33 billion, up 103.9% year over year. Analysts also raised their third-quarter EPS forecast, reinforcing expectations for continued momentum. Teradyne Q3 EPS Forecast Increased by Northland Securities
• Positive Sentiment: Favorable sector rotation: Semiconductor and robotics stocks have attracted buying in a broader technology rally, while investors have shifted some attention away from the largest technology companies. Teradyne’s chip-testing and robotics businesses are positioned to benefit from this risk-on environment. Today's Trade Is to Buy Chips and Sell the Magnificent 7
• Neutral Sentiment: Relative valuation support: A comparison with KLA suggests investors are willing to pay a higher multiple for semiconductor-equipment companies viewed as having stronger growth prospects, a framework that favors Teradyne’s faster AI-related growth. How KLA Went From Cheaper Than Teradyne to the Pricier Stock
• Negative Sentiment: Valuation risk: Teradyne trades at approximately 10.36 times sales and has a high earnings multiple, leaving less room for disappointment. The stock’s strong performance depends on AI demand, chip-testing growth and robotics execution continuing to justify its premium valuation. Teradyne Is Overvalued at 10.36X PS: Should You Still Buy the Stock?

Teradyne Stock Performance

Shares of TER stock opened at $403.56 on Wednesday. Teradyne, Inc. has a one year low of $103.33 and a one year high of $487.91. The company's 50-day simple moving average is $383.04 and its 200-day simple moving average is $340.05. The stock has a market capitalization of $63.09 billion, a price-to-earnings ratio of 55.36, a PEG ratio of 0.74 and a beta of 1.78.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported $2.47 EPS for the quarter, topping the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The business's revenue was up 103.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.57 EPS. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. As a group, research analysts forecast that Teradyne, Inc. will post 9.1 EPS for the current year.

Teradyne Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were paid a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.1%. This is a positive change from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. Teradyne's dividend payout ratio (DPR) is currently 7.13%.

Insider Buying and Selling

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $423.03, for a total value of $1,692,120.00. Following the transaction, the chief executive officer owned 120,470 shares of the company's stock, valued at $50,962,424.10. This trade represents a 3.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Ryan Driscoll sold 680 shares of Teradyne stock in a transaction that occurred on 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 transaction, the vice president owned 7,665 shares of the company's stock, valued at approximately $2,894,304. The trade was a 8.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 14,941 shares of company stock worth $5,444,112 over the last quarter. 0.19% of the stock is owned by company insiders.

About Teradyne

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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