Teradyne (NASDAQ:TER) Shares Gap Down - Time to Sell?

Key Points

• Teradyne shares fell sharply, opening at $332.86 after closing at $341.62 and later trading near $327, below both its 50-day and 200-day moving averages.
• Despite the decline, analyst sentiment remains positive overall: Teradyne has a “Moderate Buy” consensus rating and an average price target of $396.80, although one analyst recently downgraded the stock to “Hold.”
• The company reported strong quarterly results, with EPS of $2.47 beating estimates and revenue rising 103.9% year over year to $1.33 billion. Teradyne also declared a quarterly dividend of $0.13 per share, yielding approximately 0.2%.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $341.62, but opened at $332.86. Teradyne shares last traded at $327.1540, with a volume of 171,237 shares changing hands.

Wall Street Analysts Forecast Growth

TER has been the subject of a number of research reports. Wall Street Zen downgraded Teradyne from a "buy" rating to a "hold" rating in a research note on Saturday, August 29th. Evercore reaffirmed an "outperform" rating and set a $420.00 target price on shares of Teradyne in a research report on Thursday, July 30th. UBS Group boosted their price objective on shares of Teradyne from $440.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, July 20th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $550.00 price objective on shares of Teradyne in a research note on Wednesday, July 29th. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $465.00 target price on shares of Teradyne in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $396.80.

Teradyne Price Performance

The company has a market cap of $52.96 billion, a price-to-earnings ratio of 46.42, a price-to-earnings-growth ratio of 0.68 and a beta of 1.78. The business's fifty day moving average price is $374.85 and its 200 day moving average price is $357.88.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, beating analysts' consensus estimates of $2.09 by $0.38. The business had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.Teradyne's quarterly revenue was up 103.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.57 EPS. As a group, equities research analysts anticipate that Teradyne, Inc. will post 9.1 EPS for the current year.

Teradyne Dividend Announcement

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

Insider Activity at Teradyne

In related news, CEO Gregory Stephen Smith sold 4,000 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the transaction, the chief executive officer owned 112,495 shares in the company, valued at $47,810,375. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Teradyne

Institutional investors and hedge funds have recently bought and sold shares of the company. Range Advisory LLC boosted its holdings in shares of Teradyne by 16.8% in the second quarter. Range Advisory LLC now owns 1,975 shares of the company's stock worth $955,000 after buying an additional 284 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Teradyne in the 2nd quarter worth about $1,326,000. California State Teachers Retirement System boosted its stake in Teradyne by 46,425.7% during the second quarter. California State Teachers Retirement System now owns 115,598,569 shares of the company's stock worth $55,931,212,000 after buying an additional 115,350,107 shares during the period. VELA Investment Management LLC purchased a new stake in shares of Teradyne in the second quarter worth approximately $299,000. Finally, Greenland Capital Management LP purchased a new stake in Teradyne in the 2nd quarter valued at about $396,000. 99.77% of the stock is currently owned by institutional investors.

Teradyne Company Profile

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company's product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.

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