Teradyne (NASDAQ:TER) Sets New 52-Week High - Time to Buy?

Key Points

• Teradyne shares hit a new 52-week high, rising as high as $472.58 and closing near that level after a 3.7% gain, reflecting strong recent momentum in the stock.
• Wall Street sentiment has improved, with multiple analysts raising ratings and price targets; the stock now carries a Moderate Buy consensus and an average target price of $382.87.
• Teradyne reported better-than-expected quarterly results, including EPS of $2.56 versus $2.11 expected and revenue of $1.28 billion, while also increasing its quarterly dividend from $0.12 to $0.13.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s share price reached a new 52-week high on Tuesday . The company traded as high as $472.58 and last traded at $471.9440, with a volume of 219631 shares traded. The stock had previously closed at $463.21.

Wall Street Analysts Forecast Growth

TER has been the topic of several analyst reports. JPMorgan Chase & Co. raised Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 target price on the stock in a report on Thursday, April 30th. Weiss Ratings raised Teradyne from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, May 4th. Susquehanna lifted their price objective on shares of Teradyne from $415.00 to $550.00 and gave the company a "positive" rating in a research report on Tuesday. Stifel Nicolaus lifted their price objective on shares of Teradyne from $325.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, April 28th. Finally, Citigroup boosted their price objective on shares of Teradyne from $325.00 to $400.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $382.87.

Teradyne Stock Up 3.7%

The stock has a fifty day moving average of $384.01 and a two-hundred day moving average of $311.33. The stock has a market cap of $75.18 billion, a price-to-earnings ratio of 89.32, a price-to-earnings-growth ratio of 1.26 and a beta of 1.79.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.20 billion. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.Teradyne's revenue was up 87.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.75 earnings per share. On average, research analysts expect that Teradyne, Inc. will post 7.2 EPS for the current year.

Teradyne Increases Dividend

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

Insider Activity at Teradyne

In related news, insider Shannon John Poulin sold 656 shares of the business's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $355.00, for a total transaction of $232,880.00. Following the sale, the insider owned 15,722 shares of the company's stock, valued at approximately $5,581,310. The trade was a 4.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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. Also, CEO Gregory Stephen Smith sold 4,000 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the transaction, the chief executive officer owned 120,470 shares in the company, valued at $50,962,424.10. The trade was a 3.21% 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. Insiders sold 14,941 shares of company stock worth $5,444,112 over the last 90 days. Company insiders own 0.19% of the company's stock.

Institutional Investors Weigh In On Teradyne

A number of institutional investors and hedge funds have recently modified their holdings of the company. Integrated Wealth Concepts LLC raised its holdings in Teradyne by 12.8% during the first quarter. Integrated Wealth Concepts LLC now owns 4,136 shares of the company's stock worth $342,000 after purchasing an additional 468 shares during the last quarter. Caxton Associates LLP acquired a new stake in Teradyne in the first quarter valued at $297,000. Cresset Asset Management LLC grew its holdings in Teradyne by 11.6% in the second quarter. Cresset Asset Management LLC now owns 6,759 shares of the company's stock valued at $608,000 after purchasing an additional 702 shares during the last quarter. NewEdge Advisors LLC increased its position in shares of Teradyne by 467.1% in the second quarter. NewEdge Advisors LLC now owns 3,408 shares of the company's stock valued at $306,000 after buying an additional 2,807 shares in the last quarter. Finally, Treasurer of the State of North Carolina increased its position in shares of Teradyne by 5.1% in the second quarter. Treasurer of the State of North Carolina now owns 75,125 shares of the company's stock valued at $6,755,000 after buying an additional 3,651 shares in the last quarter. Institutional investors and hedge funds own 99.77% of the company's stock.

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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