Teradyne (NASDAQ:TER) Shares Climb 3.2% - Here's What Happened

Key Points

• Teradyne shares rose 3.2% in Tuesday’s mid-day trading, reaching $269.35; trading volume was about 6% below its average.
• The company beat quarterly expectations, reporting EPS of $2.29 versus $2.09 expected and revenue of $1.31 billion, up 69.8% year over year. Potential profitability in robotics could add to its AI-related growth prospects.
• Analysts rate the stock a consensus Moderate Buy, with an average price target of $405.86; recent coverage also noted a steep four-week share decline and possible rebound factors, including upward earnings revisions.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s share price was up 3.2% during mid-day trading on Tuesday. The stock traded as high as $274.10 and last traded at $269.35. Approximately 3,353,779 shares traded hands during trading, a decline of 6% from the average daily volume of 3,567,385 shares. The stock had previously closed at $261.01.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s robotics business reaching profitability may broaden its AI-related growth profile and add another contributor to earnings. Teradyne stock: Robotics profitability broadens AI growth profile
• Positive Sentiment: Zacks cited Teradyne’s growth attributes as a potential source of market outperformance, supporting an optimistic growth outlook. Teradyne is an Incredible Growth Stock: 3 Reasons Why
• Positive Sentiment: Northland Securities lifted its Q3 EPS estimates. Separately, Zacks noted that analysts’ upward earnings-estimate revisions and oversold technical readings could support a rebound after the recent decline. Q3 EPS Estimates for Teradyne Lifted by Northland Securities Why You Should Buy the Dip in Teradyne
• Neutral Sentiment: Coverage comparing Teradyne with Flex as a value stock did not provide a clear conclusion in the available summaries, so it offers little specific direction for TER. FLEX or TER: Which Is the Better Value Stock Right Now?
• Negative Sentiment: Zacks reported that Teradyne had fallen sharply over the prior four weeks. Although the article described the shares as oversold, the steep decline points to recent selling pressure and potential volatility. Why You Should Buy the Dip in Teradyne

Wall Street Analysts Forecast Growth

TER has been the topic of several recent analyst reports. Evercore reissued an "outperform" rating and issued a $420.00 target price on shares of Teradyne in a report on Thursday, July 30th. Morgan Stanley lifted their price target on Teradyne from $387.00 to $397.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. The Goldman Sachs Group set a $440.00 price objective on Teradyne in a research report on Wednesday, October 28th. Finally, Wall Street Zen upgraded Teradyne from a "hold" rating to a "buy" rating in a report on Saturday, October 24th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $405.86.

Teradyne Stock Up 3.2%

The company has a market cap of $42.11 billion, a price-to-earnings ratio of 30.92, a PEG ratio of 0.63 and a beta of 1.75. The business's fifty day simple moving average is $361.91 and its two-hundred day simple moving average is $348.56.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results 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 business had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.27 billion. During the same quarter in the prior year, the business posted $0.85 EPS. The company's revenue for the quarter was up 69.8% on a year-over-year basis. Sell-side analysts predict that Teradyne, Inc. will post 9.36 EPS for the current fiscal year.

Teradyne Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were issued a dividend of $0.13 per share. 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 (DPR) is presently 5.97%.

Insider Activity at Teradyne

In other news, CEO Gregory Smith sold 4,000 shares of the business's stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the sale, the chief executive officer directly owned 104,495 shares of the company's stock, valued at approximately $35,662,053.60. The trade was a 3.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,000 shares of company stock worth $4,416,440 in the last 90 days. 0.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in TER. BlackRock Inc. acquired a new stake in shares of Teradyne in the second quarter worth $9,404,408,000. Andar Capital Management HK Ltd acquired a new position in shares of Teradyne during the 2nd quarter valued at $37,800,000. Bank of America Corp DE acquired a new position in shares of Teradyne during the 2nd quarter valued at $842,822,000. Legal & General Group Plc purchased a new stake in Teradyne during the 2nd quarter worth $656,058,000. Finally, Assenagon Asset Management S.A. boosted its position in Teradyne by 2,171.0% during the 3rd quarter. Assenagon Asset Management S.A. now owns 1,074,459 shares of the company's stock worth $430,761,000 after purchasing an additional 1,027,146 shares during the period. Hedge funds and other institutional investors own 99.77% of the company's stock.

About Teradyne

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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