Teradyne (NASDAQ:TER) Shares Climb 12.7% - Still a Buy?

Key Points

• Teradyne shares rose 12.7% to $246 in Monday trading, with volume 47% above its average.
• The company introduced Omnyx Edge, a board-testing platform for physical and edge AI applications, potentially expanding its testing opportunities as AI adoption grows.
• Teradyne’s latest quarterly results beat estimates: EPS was $2.29 versus $2.09 expected, and revenue reached $1.31 billion, up 69.8% year over year. Analysts’ consensus rating is “Moderate Buy,” with a stated average price target of $405.86.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s share price traded up 12.7% on Monday. The stock traded as high as $247.48 and last traded at $246.00. 5,343,890 shares changed hands during trading, an increase of 47% from the average daily volume of 3,629,651 shares. The stock had previously closed at $218.21.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne introduced Omnyx Edge, an inline board-test platform for the compute, sensing and motion boards used in physical and edge AI. The launch could broaden Teradyne’s testing opportunities as AI applications expand beyond data centers, though the announcement did not quantify expected revenue. Teradyne Introduces Omnyx Edge
• Positive Sentiment: Zacks upgraded TER to Rank #1, or Strong Buy, citing improving optimism about the company’s earnings prospects. The upgrade may support investor confidence, although it is based on earnings expectations rather than a newly announced financial result. Teradyne upgraded to Strong Buy
• Neutral Sentiment: Teradyne declared a quarterly cash dividend of $0.13 per share, payable December 16 to shareholders of record November 23. The announcement maintains a cash return to shareholders but does not indicate a dividend increase. Teradyne declares quarterly cash dividend

Wall Street Analysts Forecast Growth

A number of research firms recently commented on TER. Zacks Research upgraded shares of Teradyne from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 30th. Evercore reissued an "outperform" rating and issued a $420.00 target price on shares of Teradyne in a research note on Thursday, July 30th. Robert W. Baird downgraded Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 price target for the company. in a report on Friday, August 21st. Wall Street Zen cut Teradyne from a "buy" rating to a "hold" rating in a report on Saturday. Finally, Morgan Stanley lifted their price objective on Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $405.86.

Teradyne Price Performance

The firm's 50 day moving average is $351.61 and its two-hundred day moving average is $348.76. The firm has a market capitalization of $38.41 billion, a P/E ratio of 28.24, a PEG ratio of 0.43 and a beta of 1.73.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share for the quarter, topping analysts' consensus estimates of $2.09 by $0.20. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.27 billion. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. The business's revenue was up 69.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.85 earnings per share. Analysts anticipate that Teradyne, Inc. will post 9.41 EPS for the current fiscal year.

Teradyne Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were paid a $0.13 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. Teradyne's dividend payout ratio is currently 5.97%.

Insider Activity

In related 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 sale, the chief executive officer directly owned 104,495 shares in the company, 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 at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,000 shares of company stock valued at $4,416,440 over the last three months. Corporate insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Teradyne

Several large investors have recently modified their holdings of TER. BlackRock Inc. bought a new stake in shares of Teradyne during the 2nd quarter valued at $9,404,408,000. Andar Capital Management HK Ltd purchased a new stake in Teradyne during the 2nd quarter worth about $37,800,000. Aberdeen Group plc lifted its holdings in Teradyne by 3,714.7% during the 3rd quarter. Aberdeen Group plc now owns 4,654,505 shares of the company's stock worth $1,866,038,000 after purchasing an additional 4,532,489 shares in the last quarter. Bank of America Corp DE bought a new position in Teradyne in the 2nd quarter worth about $842,822,000. Finally, Legal & General Group Plc bought a new position in Teradyne in the 2nd quarter worth about $656,058,000. Institutional investors own 99.77% of the company's stock.

About Teradyne

Teradyne, Inc develops and supplies automated test equipment and robotics used by manufacturers around the world. Its test systems help customers evaluate the performance and reliability of semiconductor devices, electronic products, wireless components and storage products.

The company's offerings include semiconductor test systems, system-level test equipment and wireless test solutions. Teradyne also serves industrial automation markets through Universal Robots, which makes collaborative robots, and Mobile Industrial Robots, which develops autonomous mobile robots for moving materials in factories and other facilities.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers across global markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.