Teradyne (NASDAQ:TER) Shares Climb 8.3% - What's Next?

Key Points

• Teradyne shares rose 8.3% to $265.78 in Wednesday trading, on volume roughly in line with its daily average.
• Jefferies initiated coverage with a Buy rating, citing Teradyne’s potential as an AI play as demand for advanced chip testing grows. Analysts overall rate the stock a “Moderate Buy.”
• Quarterly results beat expectations: earnings were $2.29 per share versus a $2.09 consensus, while revenue of $1.31 billion rose 69.8% year over year.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) traded up 8.3% on Wednesday. The company traded as high as $273.22 and last traded at $265.78. Approximately 3,662,721 shares were traded during mid-day trading, an increase of 1% from the average daily volume of 3,629,501 shares. The stock had previously closed at $245.40.

Key Stories Impacting Teradyne

These are some of the TER stories that stood out recently:

• Positive Sentiment: Coverage of Jefferies’ new Buy rating described Teradyne as an AI play, reinforcing the view that demand for advanced chip testing could support future growth. Teradyne Stock Surges On Fresh Buy Rating, Called AI Play
• Neutral Sentiment: Teradyne announced a quarterly dividend of $0.13 per share, payable December 16 to shareholders of record November 23. The annualized dividend is $0.52 per share, a modest yield that is unlikely to be a major near-term stock catalyst. Teradyne Declares Quarterly Cash Dividend
• Neutral Sentiment: A report highlighted the debut of Teradyne’s Omnyx Edge, but the provided article information does not detail its expected financial impact. Teradyne stock rises as Omnyx Edge debuts

Analyst Upgrades and Downgrades

A number of research firms recently commented on TER. Morgan Stanley increased their price objective on Teradyne from $387.00 to $397.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Zacks Research raised Teradyne from a "hold" rating to a "strong-buy" rating in a report on Friday, October 30th. Robert W. Baird lowered Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 price objective on the stock. in a report on Friday, August 21st. Weiss Ratings upgraded Teradyne from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, September 29th. Finally, Jefferies Financial Group assumed coverage on shares of Teradyne in a research note on Wednesday. They set a "buy" rating and a $284.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $397.73.

Teradyne Stock Up 8.3%

The stock has a market cap of $41.49 billion, a P/E ratio of 30.51, a PEG ratio of 0.48 and a beta of 1.73. The business's 50 day simple moving average is $347.34 and its two-hundred day simple moving average is $348.91.

Teradyne (NASDAQ:TER - Get Free Report) last announced its 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 company'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 EPS. As a group, research analysts forecast that Teradyne, Inc. will post 9.41 earnings per share for the current fiscal year.

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Stockholders of record on Monday, November 23rd will be given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date is Monday, November 23rd. Teradyne's dividend payout ratio (DPR) is 5.97%.

Insider Activity at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the company's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total value of $1,365,120.00. Following the transaction, the chief executive officer directly owned 104,495 shares in the company, valued at approximately $35,662,053.60. This represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 over the last ninety days. 0.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Teradyne

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in shares of Teradyne during the 2nd quarter worth $9,404,408,000. State Street Corp increased its stake in Teradyne by 4.6% in the second quarter. State Street Corp now owns 7,290,460 shares of the company's stock valued at $3,527,416,000 after acquiring an additional 320,034 shares during the last quarter. Aberdeen Group plc raised its position in Teradyne by 3,714.7% during the third quarter. Aberdeen Group plc now owns 4,654,505 shares of the company's stock valued at $1,866,038,000 after purchasing an additional 4,532,489 shares in the last quarter. Van ECK Associates Corp raised its position in Teradyne by 5.0% during the second quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company's stock valued at $1,261,813,000 after purchasing an additional 123,549 shares in the last quarter. Finally, ABS Investment Management LLC bought a new stake in Teradyne during the second quarter worth about $1,006,387,000. Institutional investors own 99.77% of the company's stock.

Teradyne Company Profile

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.

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.