William Blair Investment Management LLC Trims Stock Holdings in Teradyne, Inc. $TER

Key Points

• William Blair Investment Management cut its Teradyne stake by 11.7% in the fourth quarter, selling 90,885 shares and ending with 684,578 shares valued at about $132.5 million.
• Teradyne reported a strong quarter, with EPS of $2.56 versus estimates of $2.11 and revenue of $1.28 billion versus expectations of $1.20 billion. Revenue jumped 87% year over year.
• The company also raised its quarterly dividend to $0.13 per share, while analysts remain generally positive, with an average rating of Moderate Buy and an average target price of $339.80.

William Blair Investment Management LLC trimmed its holdings in Teradyne, Inc. (NASDAQ:TER - Free Report) by 11.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 684,578 shares of the company's stock after selling 90,885 shares during the quarter. William Blair Investment Management LLC owned approximately 0.44% of Teradyne worth $132,507,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Teradyne in the fourth quarter worth approximately $37,000. True Wealth Design LLC raised its holdings in shares of Teradyne by 49.6% in the fourth quarter. True Wealth Design LLC now owns 211 shares of the company's stock worth $41,000 after buying an additional 70 shares during the period. Root Financial Partners LLC purchased a new stake in shares of Teradyne in the third quarter worth approximately $31,000. Davidson Capital Management Inc. purchased a new stake in shares of Teradyne in the third quarter worth approximately $31,000. Finally, Activest Wealth Management raised its holdings in shares of Teradyne by 73.6% in the fourth quarter. Activest Wealth Management now owns 243 shares of the company's stock worth $47,000 after buying an additional 103 shares during the period. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

Teradyne Stock Up 1.4%

TER opened at $358.44 on Friday. The stock's fifty day moving average is $340.16 and its two-hundred day moving average is $269.68. The company has a market capitalization of $56.11 billion, a P/E ratio of 66.38, a PEG ratio of 1.47 and a beta of 1.79. Teradyne, Inc. has a 52 week low of $75.99 and a 52 week high of $422.11.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, topping 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%.Teradyne's quarterly revenue was up 87.0% on a year-over-year basis. During the same period last year, the business posted $0.75 EPS. Equities analysts anticipate that Teradyne, Inc. will post 7.09 earnings per share for the current year.

Teradyne Increases Dividend

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

Analysts Set New Price Targets

Several research analysts have commented on TER shares. Citigroup raised their price objective on Teradyne from $325.00 to $400.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Northland Securities restated a "market perform" rating and set a $270.00 price objective on shares of Teradyne in a report on Wednesday, February 4th. Zacks Research upgraded Teradyne from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Morgan Stanley set a $387.00 price objective on Teradyne in a report on Thursday, April 30th. Finally, Stifel Nicolaus raised their price objective on Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, April 28th. 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. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $339.80.

Insider Buying and Selling at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 8,597 shares of the stock in a transaction 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 sale, the chief executive officer 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Ryan Driscoll sold 680 shares of the stock in a transaction 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 sale, the vice president directly owned 7,665 shares in the company, valued at $2,894,304. This trade represents a 8.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is currently 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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