Teradyne, Inc. $TER Shares Sold by K2 Principal Fund L.P.

Key Points

• K2 Principal Fund L.P. cut its Teradyne stake by 69.5% in the fourth quarter, selling 8,336 shares and ending with 3,664 shares worth about $709,000.
• Teradyne reported strong quarterly results, with EPS of $2.56 topping estimates of $2.11 and revenue of $1.28 billion beating forecasts; revenue rose 87% year over year.
• The stock has been active on both the insider and analyst fronts, with recent insider sales under 10b5-1 plans and multiple analysts raising price targets while keeping an overall Moderate Buy rating.

K2 Principal Fund L.P. decreased its holdings in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) by 69.5% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 3,664 shares of the company's stock after selling 8,336 shares during the period. K2 Principal Fund L.P.'s holdings in Teradyne were worth $709,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Teradyne during the fourth quarter worth about $28,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Teradyne in the fourth quarter valued at about $37,000. True Wealth Design LLC lifted its position in Teradyne by 49.6% in the fourth quarter. True Wealth Design LLC now owns 211 shares of the company's stock valued at $41,000 after purchasing an additional 70 shares during the period. Davidson Capital Management Inc. acquired a new stake in Teradyne in the third quarter valued at about $31,000. Finally, Hazlett Burt & Watson Inc. lifted its position in Teradyne by 92.0% in the fourth quarter. Hazlett Burt & Watson Inc. now owns 240 shares of the company's stock valued at $46,000 after purchasing an additional 115 shares during the period. Institutional investors and hedge funds own 99.77% of the company's stock.

Teradyne Trading Up 5.7%

Shares of Teradyne stock opened at $403.20 on Friday. Teradyne, Inc. has a 12-month low of $83.00 and a 12-month high of $422.11. The stock has a market cap of $63.12 billion, a PE ratio of 74.67, a price-to-earnings-growth ratio of 1.66 and a beta of 1.79. The company has a 50-day moving average of $364.24 and a two-hundred day moving average of $291.25.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same period last year, the company posted $0.75 earnings per share. The firm's quarterly revenue was up 87.0% compared to the same quarter last year. On average, sell-side analysts forecast that Teradyne, Inc. will post 7.09 EPS for the current fiscal year.

Teradyne Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 0.1%. This is a boost from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Thursday, May 21st. Teradyne's dividend payout ratio is 9.63%.

Insider Buying and Selling at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 8,597 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $338.98, for a total value of $2,914,211.06. Following the completion of the transaction, the chief executive officer directly owned 124,470 shares of the company's stock, valued at approximately $42,192,840.60. This trade represents a 6.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the completion of the transaction, the insider directly owned 15,066 shares of the company's stock, 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. Over the last three months, insiders sold 10,941 shares of company stock valued at $3,751,992. Corporate insiders own 0.19% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Robert W. Baird set a $350.00 price objective on shares of Teradyne in a research report on Thursday, April 30th. Stifel Nicolaus raised their price objective on shares of Teradyne from $325.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, April 28th. Citigroup raised their price objective on shares of Teradyne from $325.00 to $400.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Evercore set a $370.00 price objective on shares of Teradyne in a research report on Thursday, April 30th. Finally, Morgan Stanley set a $387.00 price objective on shares of Teradyne in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $339.80.

Teradyne 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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