Teradyne (NASDAQ:TER) Stock Price Down 4.9% - Here's Why

Key Points

• Teradyne shares fell 4.9% to $261.01, with trading volume 45% above its average. The decline followed an analyst downgrade and elevated put-option activity, signaling increased concern about near-term downside.
• Despite the selloff, Teradyne’s robotics business reportedly reached profitability, while Northland Securities raised its third-quarter EPS estimate. Zacks also identified the stock as technically oversold after a 38.9% four-week decline.
• The latest quarter exceeded expectations, with EPS of $2.29 versus $2.09 expected and revenue of $1.31 billion versus $1.27 billion expected; revenue grew 69.8% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $405.86.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s stock price traded down 4.9% during trading on Monday. The company traded as low as $257.84 and last traded at $261.01. 5,170,952 shares traded hands during mid-day trading, an increase of 45% from the average daily volume of 3,562,727 shares. The stock had previously closed at $274.37.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s robotics business reportedly reached profitability, an important milestone that could improve confidence in the company’s long-term growth and margins. Teradyne stock gains as robotics reaches profitability
• Positive Sentiment: Northland Securities raised its third-quarter EPS estimate, suggesting analysts see potential for Teradyne to outperform prior expectations. Q3 EPS Estimates for Teradyne Lifted by Northland Securities
• Positive Sentiment: A Zacks analysis said TER has entered technically oversold territory after falling 38.9% in four weeks. The article also cited broad upward revisions to earnings estimates, which could support a rebound if selling pressure eases. Down 38.9% in 4 Weeks, Here's Why You Should You Buy the Dip in Teradyne
• Neutral Sentiment: Teradyne appeared on a list of robotics stocks to watch, keeping the company on investors’ radar but providing limited new information about its valuation or outlook. Robotics Stocks To Watch Now
• Negative Sentiment: An analyst downgrade has contributed to selling pressure and raised concerns about Teradyne’s near-term valuation or growth prospects. Teradyne Stock Falls Following Analyst Downgrade
• Negative Sentiment: Unusually high trading in TER put options signals that some traders are positioning for, or hedging against, additional downside. Stock Traders Purchase High Volume of Teradyne Put Options

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Robert W. Baird lowered shares of Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 price target for the company. in a research report on Friday, August 21st. Wall Street Zen upgraded Teradyne from a "hold" rating to a "buy" rating in a report on Saturday, October 24th. Cantor Fitzgerald reissued an "overweight" rating and issued a $550.00 target price on shares of Teradyne in a research note on Wednesday, July 29th. Morgan Stanley boosted their target price on Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Finally, Zacks Research cut Teradyne from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. Eleven investment 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, the stock currently has an average rating of "Moderate Buy" and an average price target of $405.86.

Teradyne Stock Down 4.9%

The business's 50-day simple moving average is $364.20 and its 200-day simple moving average is $348.40. The stock has a market cap of $40.81 billion, a PE ratio of 29.97, a PEG ratio of 0.54 and a beta of 1.73.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The company reported $2.29 EPS for the quarter, beating the consensus estimate of $2.09 by $0.20. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. Teradyne had a net margin of 27.46% and a return on equity of 43.81%. The company's quarterly revenue was up 69.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.85 earnings per share. As a group, equities research analysts anticipate that Teradyne, Inc. will post 9.36 earnings per share for the current fiscal year.

Teradyne Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were 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 was Friday, September 4th. Teradyne's payout ratio is currently 5.97%.

Insider Buying and Selling

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the company's stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the completion of the transaction, the chief executive officer owned 104,495 shares of the company's stock, valued at $35,662,053.60. This represents a 3.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 12,000 shares of company stock worth $4,416,440. Corporate insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Teradyne

Several hedge funds have recently made changes to their positions in the business. Leeward Financial Partners LLC purchased a new stake in Teradyne in the second quarter worth $3,735,000. Legal & General Group Plc purchased a new stake in shares of Teradyne during the second quarter valued at $656,058,000. B. Metzler seel. Sohn & Co. AG purchased a new stake in shares of Teradyne during the second quarter valued at $4,826,000. Handelsbanken Fonder AB boosted its stake in shares of Teradyne by 2.6% during the second quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company's stock valued at $61,927,000 after purchasing an additional 3,250 shares during the period. Finally, Baird Financial Group Inc. grew its holdings in shares of Teradyne by 147.2% in the second quarter. Baird Financial Group Inc. now owns 53,029 shares of the company's stock worth $25,658,000 after purchasing an additional 31,579 shares during the last quarter. 99.77% of the stock is owned by hedge funds and other institutional investors.

About Teradyne

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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