Gregory Stephen Smith Sells 554 Shares of Teradyne, Inc. (NASDAQ:TER) Stock

Key Points

• Teradyne's CEO, Gregory Stephen Smith, sold 554 shares of the company's stock for $58,574.42, reducing his ownership by 0.56% to approximately $10.31 million in total value.
• The company's quarterly earnings report showed an earnings per share of $0.57, exceeding estimates by $0.03, despite a 10.7% year-over-year revenue decline to $651.80 million.
• Teradyne has announced a $1 billion share buyback plan, indicating management's belief that the stock is undervalued, alongside a dividend yield of 0.5%.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) CEO Gregory Stephen Smith sold 554 shares of the stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $105.73, for a total value of $58,574.42. Following the sale, the chief executive officer directly owned 97,547 shares in the company, valued at $10,313,644.31. This trade represents a 0.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

Teradyne Trading Up 1.1%

NASDAQ:TER traded up $1.21 during trading hours on Tuesday, reaching $106.93. 7,231,843 shares of the company were exchanged, compared to its average volume of 3,508,901. The stock's 50-day moving average is $90.28 and its 200-day moving average is $92.25. Teradyne, Inc. has a twelve month low of $65.77 and a twelve month high of $144.16. The firm has a market cap of $17.15 billion, a PE ratio of 37.00, a price-to-earnings-growth ratio of 2.19 and a beta of 1.72.

Teradyne (NASDAQ:TER - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.03. Teradyne had a return on equity of 18.16% and a net margin of 16.59%. The company had revenue of $651.80 million for the quarter, compared to analysts' expectations of $649.02 million. During the same period in the previous year, the firm posted $0.86 EPS. Teradyne's revenue was down 10.7% compared to the same quarter last year. As a group, research analysts anticipate that Teradyne, Inc. will post 3.88 EPS for the current year.

Teradyne Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Thursday, May 22nd were issued a dividend of $0.12 per share. The ex-dividend date of this dividend was Thursday, May 22nd. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.4%. Teradyne's dividend payout ratio is presently 16.61%.

Teradyne announced that its Board of Directors has approved a share buyback plan on Monday, April 28th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to repurchase up to 8.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Teradyne

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in shares of Teradyne by 2.5% during the 1st quarter. Vanguard Group Inc. now owns 20,922,231 shares of the company's stock worth $1,728,176,000 after acquiring an additional 516,332 shares during the period. Ameriprise Financial Inc. increased its position in Teradyne by 28.3% during the fourth quarter. Ameriprise Financial Inc. now owns 4,828,689 shares of the company's stock worth $608,025,000 after purchasing an additional 1,065,474 shares during the last quarter. Geode Capital Management LLC raised its stake in Teradyne by 2.4% during the fourth quarter. Geode Capital Management LLC now owns 4,105,505 shares of the company's stock worth $515,665,000 after purchasing an additional 94,374 shares during the period. Aspex Management HK Ltd raised its stake in Teradyne by 35.5% during the fourth quarter. Aspex Management HK Ltd now owns 3,234,842 shares of the company's stock worth $407,331,000 after purchasing an additional 847,409 shares during the period. Finally, Allspring Global Investments Holdings LLC boosted its holdings in Teradyne by 26.4% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 3,118,297 shares of the company's stock valued at $286,634,000 after purchasing an additional 652,175 shares during the last quarter. 99.77% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on TER shares. Cowen reiterated a "buy" rating on shares of Teradyne in a report on Wednesday, July 30th. Cantor Fitzgerald set a $105.00 price target on shares of Teradyne and gave the company an "overweight" rating in a research note on Tuesday, June 24th. The Goldman Sachs Group reiterated a "sell" rating and set a $85.00 price objective on shares of Teradyne in a research note on Wednesday, July 30th. Stifel Nicolaus upped their target price on Teradyne from $85.00 to $100.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. Finally, Wall Street Zen downgraded Teradyne from a "hold" rating to a "sell" rating in a research note on Saturday. Three analysts have rated the stock with a sell rating, five have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $114.44.

Teradyne Company Profile

Teradyne, Inc designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications.