Teradyne (NASDAQ:TER) Shares Gap Down - Here's Why

Key Points

• Teradyne shares fell sharply: The stock opened at $347.12 versus its prior close of $379.72, an 11.4% decline, amid trading below its 50- and 200-day moving averages.
• Analyst sentiment remains broadly positive but mixed: Teradyne has a consensus “Moderate Buy” rating and a $396.80 price target, though several firms recently downgraded the stock to “Hold.”
• Recent operating results were strong: The company reported quarterly EPS of $2.47 versus a $2.09 consensus estimate, while revenue rose 103.9% year over year to $1.33 billion.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $379.72, but opened at $347.12. Teradyne shares last traded at $345.0780, with a volume of 437,045 shares trading hands.

Analyst Upgrades and Downgrades

TER has been the topic of a number of recent research reports. Robert W. Baird reissued a "neutral" rating and set a $420.00 target price on shares of Teradyne in a research report on Friday, August 21st. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Bank of America raised their price objective on Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Weiss Ratings lowered Teradyne from a "buy (b)" rating to a "hold (c+)" rating in a report on Thursday, September 3rd. Finally, Wall Street Zen cut Teradyne from a "buy" rating to a "hold" rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, Teradyne presently has a consensus rating of "Moderate Buy" and a consensus price target of $396.80.

Teradyne Stock Down 11.4%

The stock has a market cap of $52.58 billion, a price-to-earnings ratio of 46.12, a price-to-earnings-growth ratio of 0.77 and a beta of 1.78. The company's 50-day moving average is $365.59 and its 200-day moving average is $360.34.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.38. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same quarter last year, the company earned $0.57 earnings per share. The company's revenue for the quarter was up 103.9% compared to the same quarter last year. On average, research analysts forecast that Teradyne, Inc. will post 9.1 earnings per share for the current year.

Teradyne Announces Dividend

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

Insider Activity

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction on Monday, August 17th. The stock was sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the completion of the transaction, the chief executive officer directly owned 112,495 shares of the company's stock, valued at approximately $47,810,375. This trade represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.19% of the company's stock.

Institutional Investors Weigh In On Teradyne

A number of hedge funds have recently made changes to their positions in TER. Leeward Financial Partners LLC acquired a new stake in Teradyne in the 2nd quarter valued at about $3,735,000. Legal & General Group Plc acquired a new stake in shares of Teradyne in the second quarter valued at approximately $656,058,000. B. Metzler seel. Sohn & Co. AG bought a new position in Teradyne in the 2nd quarter worth approximately $4,826,000. Handelsbanken Fonder AB raised its position in Teradyne by 2.6% in the 2nd quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company's stock worth $61,927,000 after purchasing an additional 3,250 shares during the last quarter. Finally, Zweig DiMenna Associates LLC lifted its holdings in Teradyne by 10.0% during the 4th quarter. Zweig DiMenna Associates LLC now owns 80,629 shares of the company's stock worth $15,607,000 after buying an additional 7,300 shares in the last quarter. Institutional investors and hedge funds own 99.77% of the company's stock.

Teradyne Company Profile

Teradyne, Inc NASDAQ: TER develops and supplies automated test equipment and industrial automation solutions. Its testing products are used by semiconductor, electronics, wireless, storage and other manufacturers to evaluate the performance and quality of components, devices and systems during production.

The company's semiconductor test business provides systems for testing logic, memory, analog and mixed-signal devices, along with related handlers and software. Teradyne also offers system and product test solutions for electronic equipment and wireless devices.

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