Teradyne (NASDAQ:TER) Hits New 52-Week High - Should You Buy?

Key Points

• Teradyne hit a new 52-week high, trading as high as $448.81 and last around $453.17, reflecting strong recent momentum in the stock.
• Analyst sentiment remains bullish, with multiple firms raising price targets and upgrades coming from Weiss Ratings and JPMorgan; the stock currently carries a Moderate Buy consensus.
• The company reported better-than-expected earnings, with quarterly EPS of $2.56 versus $2.11 expected and revenue up 87% year over year, while also increasing its quarterly dividend to $0.13 per share.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s stock price reached a new 52-week high during trading on Monday . The stock traded as high as $448.81 and last traded at $453.1660, with a volume of 33417 shares trading hands. The stock had previously closed at $437.92.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Weiss Ratings upgraded shares of Teradyne from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, May 4th. Citigroup increased their target price on Teradyne from $325.00 to $400.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. UBS Group lifted their price target on Teradyne from $325.00 to $440.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. JPMorgan Chase & Co. upgraded Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 price target for the company in a research note on Thursday, April 30th. Finally, Evercore set a $370.00 price target on shares of Teradyne in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Teradyne presently has an average rating of "Moderate Buy" and an average price target of $339.80.

Teradyne Stock Up 1.3%

The firm has a market capitalization of $69.47 billion, a P/E ratio of 82.24, a PEG ratio of 1.80 and a beta of 1.79. The firm has a 50 day moving average of $374.49 and a 200-day moving average of $300.85.

Teradyne (NASDAQ:TER - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, topping analysts' consensus estimates of $2.11 by $0.45. The firm 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 revenue was up 87.0% on a year-over-year basis. During the same quarter last year, the company earned $0.75 EPS. As a group, research analysts expect that Teradyne, Inc. will post 7.09 EPS for the current year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were given a $0.13 dividend. The ex-dividend date was Thursday, May 21st. This is an increase from Teradyne's previous quarterly dividend of $0.12. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. Teradyne's dividend payout ratio (DPR) is 9.63%.

Insiders Place Their Bets

In related news, CEO Gregory Stephen Smith sold 4,000 shares of Teradyne stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the sale, the chief executive officer directly owned 120,470 shares of the company's stock, valued at approximately $50,962,424.10. The trade was a 3.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the company's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $355.00, for a total transaction of $232,880.00. Following the transaction, the insider owned 15,722 shares of the company's stock, valued at $5,581,310. This trade represents a 4.01% 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. 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 worth $5,444,112 over the last ninety days. Corporate insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Teradyne

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd acquired a new stake in Teradyne in the fourth quarter valued at $28,000. McIlrath & Eck LLC acquired a new position in Teradyne during the 1st quarter worth about $30,000. Davidson Capital Management Inc. bought a new stake in shares of Teradyne in the 3rd quarter valued at about $31,000. CYBER HORNET ETFs LLC bought a new stake in shares of Teradyne in the 2nd quarter valued at about $35,000. Finally, Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Teradyne in the fourth quarter valued at about $37,000. 99.77% of the stock is currently owned by institutional investors and hedge funds.

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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