Teradyne (NASDAQ:TER) Lowered to Sell Rating by Wall Street Zen

Key Points

• Teradyne has been downgraded by Wall Street Zen from a "hold" rating to a "sell" rating, indicating a more pessimistic outlook on the company's stock.
• The stock has seen a variety of ratings from other firms, with a mix of target prices ranging from $85.00 to $105.00, contributing to a consensus rating of "Moderate Buy" with a target price of $114.44.
• Despite the downgrade, Teradyne's stock performance has improved recently, with shares trading at $115.30, and the company reported a Q2 earnings beat with $0.57 EPS against an estimate of $0.54.

Teradyne (NASDAQ:TER - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Sunday.

Several other research firms also recently weighed in on TER. The Goldman Sachs Group reissued a "sell" rating and issued a $85.00 price target on shares of Teradyne in a research note on Wednesday, July 30th. Cantor Fitzgerald set a $105.00 price target on shares of Teradyne and gave the stock an "overweight" rating in a research note on Tuesday, June 24th. Morgan Stanley raised shares of Teradyne from an "underweight" rating to an "equal weight" rating and raised their price target for the stock from $74.00 to $100.00 in a research note on Thursday, July 31st. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $102.00 price target (up from $88.00) on shares of Teradyne in a research note on Thursday, July 17th. Finally, Cowen reissued a "buy" rating on shares of Teradyne in a research note on Wednesday, July 30th. One 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 assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $114.44.

Teradyne Stock Up 5.5%

Shares of NASDAQ TER opened at $115.30 on Friday. The company's 50-day simple moving average is $97.69 and its 200-day simple moving average is $91.16. Teradyne has a 52-week low of $65.77 and a 52-week high of $144.16. The firm has a market cap of $18.34 billion, a price-to-earnings ratio of 39.90, a price-to-earnings-growth ratio of 2.43 and a beta of 1.72.

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

Teradyne declared that its Board of Directors has approved a share repurchase program on Monday, April 28th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 8.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Teradyne news, CEO Gregory Stephen Smith sold 554 shares of Teradyne stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $106.00, for a total transaction of $58,724.00. Following the transaction, the chief executive officer directly owned 96,993 shares of the company's stock, valued at $10,281,258. The trade was a 0.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.16% of the stock is owned by company insiders.

Hedge Funds Weigh In On Teradyne

A number of institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in Teradyne by 2.5% during the first quarter. Vanguard Group Inc. now owns 20,922,231 shares of the company's stock worth $1,728,176,000 after purchasing an additional 516,332 shares during the period. Ameriprise Financial Inc. raised its stake in shares of Teradyne by 3.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company's stock valued at $442,413,000 after acquiring an additional 143,058 shares during the period. Federated Hermes Inc. raised its stake in shares of Teradyne by 79.7% in the 2nd quarter. Federated Hermes Inc. now owns 3,785,067 shares of the company's stock valued at $340,353,000 after acquiring an additional 1,679,215 shares during the period. Aspex Management HK Ltd raised its stake in shares of Teradyne by 35.5% in the 4th quarter. Aspex Management HK Ltd now owns 3,234,842 shares of the company's stock valued at $407,331,000 after acquiring an additional 847,409 shares during the period. Finally, Allspring Global Investments Holdings LLC raised its stake in shares of 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 acquiring an additional 652,175 shares during the period. 99.77% of the stock is owned by hedge funds and other 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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