Teradyne (NASDAQ:TER) Hits New 1-Year High - Should You Buy?

Key Points

• Teradyne's stock recently reached a new 52-week high of $145.35, with a notable increase in trading volume of 290,948 shares.
• Analysts are generally optimistic about Teradyne, with a consensus target price of $118.63 and multiple upgrades throughout the year, although one firm maintains a sell recommendation.
• The company announced a quarterly dividend of $0.12 per share, yielding approximately 0.3%, with a modest payout ratio of 16.61%.

Shares of Teradyne, Inc. (NASDAQ:TER - Get Free Report) reached a new 52-week high on Thursday . The company traded as high as $145.35 and last traded at $144.35, with a volume of 290948 shares trading hands. The stock had previously closed at $141.12.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. UBS Group reissued a "buy" rating and issued a $130.00 price objective (up previously from $120.00) on shares of Teradyne in a research note on Thursday, July 31st. Susquehanna increased their price objective on shares of Teradyne from $133.00 to $200.00 and gave the stock a "positive" rating in a report on Monday, September 22nd. Cowen reaffirmed a "buy" rating on shares of Teradyne in a research note on Wednesday, July 30th. Morgan Stanley raised shares of Teradyne from an "underweight" rating to an "equal weight" rating and increased their price target for the company from $74.00 to $100.00 in a research note on Thursday, July 31st. Finally, The Goldman Sachs Group reissued a "sell" rating and issued a $85.00 price target on shares of Teradyne in a report on Wednesday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $118.63.

Teradyne Trading Up 1.3%

The firm has a market cap of $22.75 billion, a P/E ratio of 49.43, a price-to-earnings-growth ratio of 2.90 and a beta of 1.82. The firm's 50 day moving average is $115.05 and its two-hundred day moving average is $94.08.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.54 by $0.03. Teradyne had a net margin of 16.59% and a return on equity of 18.16%. The company had revenue of $651.80 million for the quarter, compared to analysts' expectations of $649.02 million. During the same period last year, the firm posted $0.86 earnings per share. The business's quarterly revenue was down 10.7% compared to the same quarter last year. Teradyne has set its Q3 2025 guidance at 0.690-0.870 EPS. Analysts predict that Teradyne, Inc. will post 3.88 EPS for the current fiscal year.

Teradyne Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Friday, September 5th were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Friday, September 5th. Teradyne's dividend payout ratio is presently 16.61%.

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Stephen Smith sold 554 shares of the firm's stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $126.39, for a total transaction of $70,020.06. Following the sale, the chief executive officer directly owned 95,885 shares in the company, valued at $12,118,905.15. This trade represents a 0.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders have sold a total of 2,216 shares of company stock valued at $251,028 in the last ninety days. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Teradyne

A number of institutional investors have recently modified their holdings of the company. Berbice Capital Management LLC raised its position in Teradyne by 200.0% in the 1st quarter. Berbice Capital Management LLC now owns 300 shares of the company's stock valued at $25,000 after buying an additional 200 shares during the last quarter. CYBER HORNET ETFs LLC bought a new stake in shares of Teradyne during the 2nd quarter worth approximately $35,000. Manchester Capital Management LLC boosted its holdings in shares of Teradyne by 44.7% in the 1st quarter. Manchester Capital Management LLC now owns 453 shares of the company's stock valued at $37,000 after buying an additional 140 shares during the last quarter. Brooklyn Investment Group increased its holdings in Teradyne by 189.9% during the first quarter. Brooklyn Investment Group now owns 461 shares of the company's stock worth $38,000 after buying an additional 302 shares during the last quarter. Finally, Steph & Co. bought a new stake in Teradyne during the second quarter worth $43,000. 99.77% of the stock is currently owned by institutional investors.

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.

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