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

Key Points

• Teradyne has a consensus analyst rating of “Moderate Buy”, with 12 of 16 analysts recommending a buy and an average 12-month price target of $339.80.
• The company recently posted strong quarterly results, with EPS of $2.56 and revenue of $1.28 billion, both ahead of estimates, while revenue jumped 87% year over year.
• Despite the upbeat outlook, the stock has faced some caution from investors due to its elevated valuation, recent insider selling, and a recent 5.3% drop in trading.

Shares of Teradyne, Inc. (NASDAQ:TER - Get Free Report) have received a consensus rating of "Moderate Buy" from the sixteen analysts that are covering the stock, MarketBeat.com reports. Three research analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $339.80.

Several brokerages have recently commented on TER. Evercore set a $370.00 price target on Teradyne in a research note on Thursday, April 30th. Weiss Ratings raised Teradyne from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday, May 4th. Zacks Research raised Teradyne from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Stifel Nicolaus boosted their price target on Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Finally, The Goldman Sachs Group boosted their price target on Teradyne from $300.00 to $350.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne Robotics showcased production-ready “physical AI” applications at Automate 2026, highlighting continued momentum in its robotics and automation business. Teradyne Robotics in Novi Unveils Production-ready Physical AI Applications at Automate 2026
• Neutral Sentiment: A recent Seeking Alpha note argued Teradyne is benefiting from AI-related growth but still trades at “hefty premiums,” suggesting investors remain focused on valuation rather than just fundamentals. Teradyne: Runaway AI Train At Hefty Premiums - Reiterate Hold
• Neutral Sentiment: Another market commentary questioned whether TER is outperforming the technology sector, reflecting ongoing debate about whether the recent rally is justified. Teradyne stock: Is TER outperforming the technology sector?
• Negative Sentiment: CEO Gregory Stephen Smith sold 4,000 shares in a pre-arranged Rule 10b5-1 transaction, which can add to investor caution even though the sale was scheduled in advance. SEC ownership filing
• Negative Sentiment: Teradyne has also fallen more sharply than the broader market in the latest session, indicating profit-taking after its recent surge to elevated levels. Teradyne (TER) Falls More Steeply Than Broader Market: What Investors Need to Know

Insider Transactions at Teradyne

In related news, 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 transaction of $256,768.00. Following the completion of the transaction, the vice president directly owned 7,665 shares in the company, valued at $2,894,304. The trade was a 8.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of Teradyne stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $355.00, for a total value of $232,880.00. Following the transaction, the insider owned 15,722 shares of the company's stock, valued at $5,581,310. This represents a 4.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 14,941 shares of company stock valued at $5,444,112 in the last quarter. 0.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Vestor Capital LLC raised its position in shares of Teradyne by 15.4% during the 1st quarter. Vestor Capital LLC now owns 285 shares of the company's stock worth $85,000 after purchasing an additional 38 shares during the last quarter. UMB Bank n.a. raised its position in shares of Teradyne by 1.8% during the 4th quarter. UMB Bank n.a. now owns 2,293 shares of the company's stock worth $444,000 after purchasing an additional 40 shares during the last quarter. Stephens Inc. AR raised its position in shares of Teradyne by 1.2% during the 4th quarter. Stephens Inc. AR now owns 3,332 shares of the company's stock worth $645,000 after purchasing an additional 41 shares during the last quarter. Sapient Capital LLC raised its position in shares of Teradyne by 1.5% during the 4th quarter. Sapient Capital LLC now owns 2,849 shares of the company's stock worth $560,000 after purchasing an additional 43 shares during the last quarter. Finally, Whittier Trust Co. raised its position in shares of Teradyne by 5.5% during the 1st quarter. Whittier Trust Co. now owns 827 shares of the company's stock worth $261,000 after purchasing an additional 43 shares during the last quarter. 99.77% of the stock is currently owned by institutional investors and hedge funds.

Teradyne Trading Down 5.3%

Shares of TER opened at $409.35 on Wednesday. Teradyne has a twelve month low of $84.24 and a twelve month high of $437.77. The stock's 50 day moving average is $368.69 and its two-hundred day moving average is $295.62. The firm has a market capitalization of $64.08 billion, a PE ratio of 75.81, a P/E/G ratio of 1.78 and a beta of 1.79.

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

Teradyne Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were paid a dividend of $0.13 per share. This is a positive change from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. Teradyne's dividend payout ratio is presently 9.63%.

About Teradyne

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.

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