Teradyne (NASDAQ:TER) Stock Price Down 3.2% - What's Next?

Key Points

• Teradyne shares fell 3.2% to $430.32 on lower-than-average trading volume, despite remaining above their 50-day and 200-day moving averages.
• The company unveiled the Titan HP testing platform, invested in Bright Machines, and launched Magnum E2—developments aimed at expanding its exposure to AI infrastructure, semiconductor testing, robotics, and automated manufacturing.
• Analyst sentiment remains positive, with 11 Buy ratings and five Holds; however, the average price target of $396.80 is below the current share price. Teradyne’s latest quarterly results also exceeded estimates, with revenue up 103.9% year over year.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) shares traded down 3.2% on Tuesday. The company traded as low as $427.04 and last traded at $430.32. Approximately 1,993,970 shares were traded during trading, a decline of 44% from the average daily volume of 3,556,697 shares. The stock had previously closed at $444.53.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne introduced the Titan HP platform, which adds burn-in capabilities for advanced AI data-center devices. The system is designed to reduce testing costs and factory-floor requirements while helping customers accelerate production. Teradyne Introduces Titan HP Platform with Burn-In Capabilities
• Positive Sentiment: Teradyne made a strategic investment in Bright Machines and plans to combine its robotics and automated-test systems with Bright Machines’ software-defined manufacturing platform. The partnership could strengthen Teradyne’s position in AI infrastructure and data-center manufacturing. The investment amount was not disclosed. Teradyne Bright Machines Investment
• Positive Sentiment: Analyst commentary remains constructive on Teradyne’s AI-driven memory-test growth and upbeat third-quarter outlook. The company’s recent momentum is also supported by demand for semiconductor testing, robotics and physical-AI applications. Teradyne Gains 130 Percent YTD
• Positive Sentiment: The launch of the Magnum E2 product adds another potential catalyst for Teradyne’s test-equipment business. Teradyne Launches Magnum E2

Analysts Set New Price Targets

TER has been the subject of several analyst reports. Evercore reaffirmed an "outperform" rating and set a $420.00 price target on shares of Teradyne in a research note on Thursday, July 30th. UBS Group increased their price objective on Teradyne from $440.00 to $500.00 and gave the company a "buy" rating in a report on Monday, July 20th. Susquehanna raised their target price on Teradyne from $415.00 to $550.00 and gave the stock a "positive" rating in a research report on Tuesday, June 30th. Morgan Stanley lifted their target price on Teradyne from $387.00 to $397.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Finally, Weiss Ratings upgraded Teradyne from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 29th. Eleven analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Teradyne has an average rating of "Moderate Buy" and an average target price of $396.80.

Teradyne Trading Down 3.2%

The stock has a market cap of $67.28 billion, a price-to-earnings ratio of 59.03, a P/E/G ratio of 0.91 and a beta of 1.75. The stock's 50-day moving average price is $377.28 and its 200-day moving average price is $369.42.

Teradyne (NASDAQ:TER - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. Teradyne's revenue for the quarter was up 103.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.57 earnings per share. As a group, analysts predict that Teradyne, Inc. will post 9.11 earnings per share for the current year.

Teradyne Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a $0.13 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. Teradyne's dividend payout ratio (DPR) is 7.13%.

Insider Activity

In other news, CEO Gregory Smith sold 4,000 shares of the business's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total value of $1,351,320.00. Following the transaction, the chief executive officer directly owned 108,495 shares of the company's stock, valued at $36,652,865.85. The trade was a 3.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Teradyne

Several large investors have recently added to or reduced their stakes in TER. BlackRock Inc. acquired a new position in shares of Teradyne during the 2nd quarter valued at $9,404,408,000. Andar Capital Management HK Ltd acquired a new stake in Teradyne in the second quarter worth $37,800,000. Bank of America Corp DE acquired a new stake in Teradyne in the second quarter worth $842,822,000. Legal & General Group Plc bought a new stake in Teradyne in the second quarter valued at $656,058,000. Finally, Aspex Management HK Ltd bought a new stake in Teradyne in the fourth quarter valued at $199,723,000. Institutional investors and hedge funds own 99.77% of the company's stock.

About Teradyne

Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.

Teradyne's products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.

Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.

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