Teradyne, Inc. (NASDAQ:TER) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Teradyne has a consensus analyst rating of “Moderate Buy” from 16 covering firms, with an average 12-month price target of $339.80.
• The company recently reported strong quarterly results, earning $2.56 per share versus the $2.11 estimate and posting revenue of $1.28 billion, up 87% year over year.
• Teradyne also raised its quarterly dividend to $0.13 per share, while insider filings showed recent stock sales by CEO Gregory Stephen Smith and VP Ryan Driscoll.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the sixteen ratings firms that are covering the stock, MarketBeat.com reports. Three analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $339.80.

Several equities analysts recently issued reports on TER shares. Evercore set a $370.00 price target on Teradyne in a research report on Thursday, April 30th. UBS Group raised their price target on Teradyne from $325.00 to $440.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. Wall Street Zen upgraded Teradyne from a "hold" rating to a "buy" rating in a research report on Saturday, February 21st. Susquehanna lifted their price objective on Teradyne from $335.00 to $415.00 and gave the stock a "positive" rating in a research report on Thursday, April 9th. Finally, Stifel Nicolaus lifted their price objective on Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research report on Tuesday, April 28th.

Teradyne Price Performance

TER opened at $358.44 on Friday. The stock's 50 day simple moving average is $340.16 and its 200 day simple moving average is $269.68. Teradyne has a 1 year low of $75.99 and a 1 year high of $422.11. The firm has a market cap of $56.11 billion, a price-to-earnings ratio of 66.38, a PEG ratio of 1.45 and a beta of 1.79.

Teradyne (NASDAQ:TER - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.11 by $0.45. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the company earned $0.75 EPS. Teradyne's revenue for the quarter was up 87.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Teradyne will post 7.09 EPS for the current year.

Teradyne Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Thursday, May 21st will be given a $0.13 dividend. The ex-dividend date is Thursday, May 21st. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. This is an increase from Teradyne's previous quarterly dividend of $0.12. Teradyne's dividend payout ratio is 9.63%.

Insider Buying and Selling

In other news, CEO Gregory Stephen Smith sold 8,597 shares of Teradyne stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $338.98, for a total value of $2,914,211.06. Following the sale, the chief executive officer directly owned 124,470 shares in the company, valued at approximately $42,192,840.60. This trade represents a 6.46% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Ryan Driscoll sold 680 shares of Teradyne stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares in the company, valued at approximately $2,894,304. This represents a 8.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Teradyne

Large investors have recently made changes to their positions in the business. McIlrath & Eck LLC bought a new stake in shares of Teradyne in the 1st quarter worth approximately $30,000. Cornerstone Planning Group LLC lifted its stake in shares of Teradyne by 149.1% in the 1st quarter. Cornerstone Planning Group LLC now owns 142 shares of the company's stock valued at $42,000 after purchasing an additional 85 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in shares of Teradyne in the 4th quarter valued at approximately $28,000. Sunbelt Securities Inc. lifted its stake in shares of Teradyne by 66.3% in the 1st quarter. Sunbelt Securities Inc. now owns 153 shares of the company's stock valued at $45,000 after purchasing an additional 61 shares during the period. Finally, SJS Investment Consulting Inc. lifted its stake in shares of Teradyne by 192.9% in the 1st quarter. SJS Investment Consulting Inc. now owns 164 shares of the company's stock valued at $49,000 after purchasing an additional 108 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.