Teradyne (NASDAQ:TER) Stock Sees Heavy Put Option Buying

Key Points

• Teradyne saw unusually heavy put-option activity, with 15,675 puts purchased—about 101% above its average volume—signaling increased near-term hedging or bearish positioning.
• The company reported strong third-quarter results, including 69.8% year-over-year revenue growth to $1.31 billion and EPS of $2.29, driven by AI-chip and data-center demand. Management expects fourth-quarter revenue of $1.25 billion to $1.35 billion and sees further growth from compute programs.
• Despite strong fundamentals, shares fell 9.2% to $269.01 amid margin pressure, cautious near-term guidance, and valuation concerns. Analysts remain moderately bullish, with an average rating of “Moderate Buy” and a $405.86 target price.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) saw unusually large options trading activity on Friday. Traders acquired 15,675 put options on the company. This represents an increase of approximately 101% compared to the average volume of 7,807 put options.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: AI demand is driving substantial growth. Teradyne reported third-quarter revenue of approximately $1.31 billion, up nearly 70% year over year, while EPS of $2.29 exceeded the $2.09 consensus estimate. Memory and integrated systems testing benefited from accelerating AI-chip and data-center demand. Teradyne Q3 Earnings Call Highlights AI Demand and 2027 Growth Plans
• Positive Sentiment: Management sees additional growth ahead. Teradyne highlighted expanding compute programs, record memory-test revenue and a potential compute-related ramp by mid-2027. The company expects fourth-quarter revenue of $1.25 billion to $1.35 billion and is investing in capacity to support demand. Teradyne expects Q4 2026 revenue of $1.25B-$1.35B
• Positive Sentiment: Northland raised its full-year 2026 EPS forecast to $9.40 from $9.34, above the broader consensus estimate of $9.17. It also lifted its second-quarter 2027 estimate to $2.63 from $2.50, signaling confidence in longer-term earnings growth.
• Neutral Sentiment: Analyst estimates were mixed. Northland lowered its first-quarter 2027 EPS forecast to $2.27 from $2.59 and trimmed its fourth-quarter 2026 estimate slightly to $2.10 from $2.11. These reductions partially offset the increases to full-year 2026 and second-quarter 2027 estimates.
• Negative Sentiment: Near-term guidance and margins are limiting enthusiasm. Although Teradyne delivered an earnings beat, commentary indicated margin pressure from capacity investments, while the fourth-quarter outlook did not appear strong enough to match elevated expectations. As a result, shares declined following the earnings release. Teradyne stock falls despite Q3 earnings beat
• Negative Sentiment: Valuation remains a concern. A recent analysis said Teradyne’s powerful multiyear rally and exposure to AI may already reflect substantial future cash-flow growth, increasing the risk of profit-taking if execution or guidance disappoints. UBS maintained a “Buy” rating but lowered its price target to $430 from $485. Teradyne Stock May Be Above Fair Value Despite Record AI Demand

Analyst Ratings Changes

TER has been the topic of a number of research analyst reports. Wall Street Zen raised Teradyne from a "hold" rating to a "buy" rating in a research note on Saturday, October 24th. Morgan Stanley raised their price target on shares of Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Weiss Ratings upgraded Teradyne from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 29th. Robert W. Baird cut shares of Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 price target on the stock. in a research note on Friday, August 21st. Finally, UBS Group lowered their price objective on Teradyne from $485.00 to $430.00 and set a "buy" rating on the stock in a research report on Thursday. Eleven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Teradyne currently has an average rating of "Moderate Buy" and an average target price of $405.86.

Insider Buying and Selling at Teradyne

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the transaction, the chief executive officer owned 104,495 shares of the company's stock, valued at $35,662,053.60. This trade represents a 3.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 12,000 shares of company stock valued at $4,416,440. Corporate insiders own 0.19% of the company's stock.

Institutional Investors Weigh In On Teradyne

A number of institutional investors have recently modified their holdings of TER. Carolina Wealth Advisors LLC grew its position in shares of Teradyne by 42.5% in the second quarter. Carolina Wealth Advisors LLC now owns 114 shares of the company's stock valued at $55,000 after purchasing an additional 34 shares during the last quarter. Purus Wealth Management LLC lifted its stake in Teradyne by 0.3% in the third quarter. Purus Wealth Management LLC now owns 11,145 shares of the company's stock valued at $4,468,000 after buying an additional 35 shares during the period. Pinnacle Associates Ltd. lifted its holdings in shares of Teradyne by 1.8% in the 3rd quarter. Pinnacle Associates Ltd. now owns 1,940 shares of the company's stock worth $778,000 after purchasing an additional 35 shares in the last quarter. Vestor Capital LLC raised its position in Teradyne by 15.4% in the 1st quarter. Vestor Capital LLC now owns 285 shares of the company's stock valued at $85,000 after buying an additional 38 shares during the last quarter. Finally, Ashton Thomas Private Wealth LLC boosted its holdings in shares of Teradyne by 5.8% in the 2nd quarter. Ashton Thomas Private Wealth LLC now owns 727 shares of the company's stock worth $352,000 after buying an additional 40 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company's stock.

Teradyne Trading Down 9.2%

Shares of Teradyne stock traded down $27.22 during trading hours on Friday, reaching $269.01. The stock had a trading volume of 1,912,117 shares, compared to its average volume of 3,533,655. Teradyne has a twelve month low of $151.52 and a twelve month high of $487.91. The stock's 50 day moving average is $366.38 and its 200 day moving average is $348.15. The firm has a market capitalization of $42.06 billion, a PE ratio of 30.94, a PEG ratio of 0.63 and a beta of 1.75.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.20. Teradyne had a net margin of 27.46% and a return on equity of 43.81%. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the firm earned $0.85 EPS. Teradyne's revenue was up 69.8% on a year-over-year basis. As a group, sell-side analysts predict that Teradyne will post 9.17 earnings per share for the current year.

Teradyne Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were paid a dividend of $0.13 per share. The ex-dividend date was Friday, September 4th. This represents a $0.52 annualized dividend and a yield of 0.2%. Teradyne's dividend payout ratio is currently 7.13%.

Teradyne Company Profile

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company's product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.

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