Teradyne (NASDAQ:TER) Stock Falls 6.8% - Should You Sell?

Key Points

• Teradyne shares fell 6.8% to $250.99 in Wednesday’s mid-day trading, on volume 24% above average; the article also notes a 17% weekly decline.
• Despite the pullback, analysts’ consensus rating is Moderate Buy, with an average price target of $405.86. Recent coverage points to AI infrastructure demand, semiconductor testing growth, and robotics as potential growth drivers.
• Teradyne’s latest reported quarter beat expectations: EPS was $2.29 versus a $2.09 estimate, while revenue of $1.31 billion exceeded forecasts and rose 69.8% year over year.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) fell 6.8% during mid-day trading on Wednesday. The company traded as low as $245.94 and last traded at $250.99. Approximately 4,428,444 shares were traded during mid-day trading, an increase of 24% from the average daily volume of 3,571,852 shares. The stock had previously closed at $269.35.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: A recent outlook highlights demand from AI infrastructure, semiconductor testing growth and robotics momentum as drivers behind Teradyne’s reported 53% one-year gain. Should You Buy, Sell, or Hold TER Stock After a 53% Rise in One Year?
• Positive Sentiment: UBS sees 61% upside even after Teradyne shares lost 17% in a week, signaling that the firm views the pullback as potentially creating an attractive entry point. Teradyne Lost 17% in a Week. UBS Still Sees 61% Upside
• Positive Sentiment: Two growth-stock assessments point to Teradyne’s business growth attributes as support for potential outperformance. Separately, an article highlights robotics profitability as broadening its AI-related growth profile. Teradyne (TER) is an Incredible Growth Stock: 3 Reasons Why Teradyne stock: Robotics profitability broadens AI growth profile
• Neutral Sentiment: A comparison of Teradyne and Flex as value stocks was published, but the available summary does not indicate which company it favors or provide a specific valuation catalyst for TER. FLEX or TER: Which Is the Better Value Stock Right Now?
• Negative Sentiment: The reported 17% weekly drop underscores near-term selling pressure and volatility, despite UBS’s bullish price view. The headlines do not specify what triggered the decline. Teradyne Lost 17% in a Week. UBS Still Sees 61% Upside

Wall Street Analyst Weigh In

A number of brokerages have weighed in on TER. Morgan Stanley increased 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. UBS Group dropped their price objective on Teradyne from $485.00 to $430.00 and set a "buy" rating on the stock in a research note on Thursday, October 29th. Cantor Fitzgerald restated an "overweight" rating and set a $550.00 target price on shares of Teradyne in a research report on Wednesday, July 29th. Robert W. Baird lowered Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 target price on the stock. in a research report on Friday, August 21st. Finally, The Goldman Sachs Group set a $440.00 target price on Teradyne in a research note on Wednesday, October 28th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $405.86.

Teradyne Trading Down 6.8%

The firm has a market cap of $39.18 billion, a P/E ratio of 28.82, a PEG ratio of 0.51 and a beta of 1.73. The company's 50-day moving average is $360.00 and its two-hundred day moving average is $348.75.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The company reported $2.29 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.20. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.27 billion. During the same period last year, the business earned $0.85 EPS. The business's revenue was up 69.8% on a year-over-year basis. Research analysts anticipate 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. Investors of record on Friday, September 4th were issued a $0.13 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 annualized dividend and a yield of 0.2%. Teradyne's dividend payout ratio (DPR) is 5.97%.

Insider Activity at Teradyne

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the firm'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 transaction, the chief executive officer owned 104,495 shares in the company, valued at $35,662,053.60. This trade represents a 3.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 12,000 shares of company stock worth $4,416,440. Corporate insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of Teradyne in the 2nd quarter valued at approximately $9,404,408,000. Andar Capital Management HK Ltd purchased a new position in Teradyne during the 2nd quarter worth approximately $37,800,000. State Street Corp grew its position in Teradyne by 4.6% during the 2nd quarter. State Street Corp now owns 7,290,460 shares of the company's stock worth $3,527,416,000 after purchasing an additional 320,034 shares in the last quarter. Van ECK Associates Corp raised its stake in Teradyne by 5.0% during the 2nd 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 during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Teradyne by 0.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,978,124 shares of the company's stock valued at $957,096,000 after purchasing an additional 12,659 shares in the last quarter. Hedge funds and other institutional investors own 99.77% of the company's stock.

Teradyne Company Profile

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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