Teradyne (NASDAQ:TER) Shares Down 1.4% - Here's What Happened

Key Points

• Teradyne shares fell 1.4% to $379.31 in Friday trading, with volume slightly below average. The company has a $59.3 billion market capitalization and trades at a price-to-earnings ratio of 52.03.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $396.80; recent targets range from $397 to $550.
• Teradyne reported a strong quarter, earning $2.47 per share versus the $2.09 estimate and generating $1.33 billion in revenue, up 103.9% year over year. Insiders sold shares under pre-arranged trading plans, while institutional investors own 99.77% of the stock.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s share price traded down 1.4% during trading on Friday . The stock traded as low as $372.80 and last traded at $379.31. 3,732,265 shares were traded during trading, a decline of 3% from the average daily volume of 3,863,182 shares. The stock had previously closed at $384.89.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $550.00 price objective on shares of Teradyne in a research report on Wednesday, July 29th. Robert W. Baird set a $420.00 price target on shares of Teradyne in a report on Thursday, July 30th. Zacks Research upgraded shares of Teradyne from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Morgan Stanley upped their price objective on shares of Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Finally, UBS Group lifted their target price on Teradyne from $440.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Teradyne presently has a consensus rating of "Moderate Buy" and an average target price of $396.80.

Teradyne Price Performance

The stock has a market capitalization of $59.30 billion, a price-to-earnings ratio of 52.03, a PEG ratio of 0.79 and a beta of 1.78. The firm's fifty day moving average is $383.36 and its 200-day moving average is $342.29.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm's revenue for the quarter was up 103.9% compared to the same quarter last year. During the same period last year, the business earned $0.57 EPS. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. On average, sell-side analysts expect that Teradyne, Inc. will post 9.1 EPS for the current year.

Insider Transactions at Teradyne

In other Teradyne news, insider Shannon John Poulin sold 1,008 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $345.37, for a total transaction of $348,132.96. Following the transaction, the insider owned 15,066 shares of the company's stock, valued at $5,203,344.42. This trade represents a 6.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 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 8,597 shares of Teradyne stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $338.98, for a total value of $2,914,211.06. Following the completion of the transaction, the chief executive officer owned 124,470 shares of the company's stock, valued at approximately $42,192,840.60. The trade was a 6.46% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,261 shares of company stock valued at $5,187,344 over the last quarter. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Teradyne

Large investors have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC lifted its holdings in shares of Teradyne by 12.8% in the 1st 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 bought a new position in Teradyne during the 1st quarter worth $297,000. Cresset Asset Management LLC grew its stake in Teradyne by 11.6% during the 2nd quarter. Cresset Asset Management LLC now owns 6,759 shares of the company's stock worth $608,000 after buying an additional 702 shares during the last quarter. NewEdge Advisors LLC increased its position in Teradyne by 467.1% in the second quarter. NewEdge Advisors LLC now owns 3,408 shares of the company's stock worth $306,000 after buying an additional 2,807 shares during the period. Finally, Treasurer of the State of North Carolina increased its position in 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 worth $6,755,000 after buying an additional 3,651 shares during the period. 99.77% of the stock is currently owned by institutional investors.

Teradyne Company Profile

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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