Teradyne (NASDAQ:TER) Shares Gap Down - Should You Sell?

Key Points

• Teradyne shares fell sharply, opening at $360.12 versus the prior close of $375.74 and later trading around $352.69, down 3.6%.
• Analyst sentiment remains positive: Teradyne has a consensus “Moderate Buy” rating and an average price target of $396.80, with several firms raising targets to $400–$420.
• The company reported strong quarterly results, with $2.47 in earnings per share and $1.33 billion in revenue, including 103.9% year-over-year revenue growth. CEO Gregory Smith sold 4,000 shares under a pre-arranged trading plan.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $375.74, but opened at $360.12. Teradyne shares last traded at $352.6930, with a volume of 299,596 shares trading hands.

Analysts Set New Price Targets

Several research analysts have recently issued reports on TER shares. Weiss Ratings upgraded Teradyne from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday. Citigroup upped their target price on Teradyne from $325.00 to $400.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. upgraded shares of Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 price target on the stock in a report on Thursday, April 30th. Robert W. Baird reissued a "neutral" rating and set a $420.00 price target on shares of Teradyne in a research report on Friday. Finally, Zacks Research raised shares of Teradyne from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $396.80.

Teradyne Trading Down 3.6%

The firm has a market cap of $56.63 billion, a price-to-earnings ratio of 49.63, a PEG ratio of 0.76 and a beta of 1.78. The company has a fifty day moving average price of $386.46 and a 200-day moving average price of $354.52.

Teradyne (NASDAQ:TER - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping the consensus estimate of $2.09 by $0.38. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.Teradyne's revenue for the quarter was up 103.9% compared to the same quarter last year. During the same period last year, the company earned $0.57 earnings per share. As a group, research analysts forecast that Teradyne, Inc. will post 9.1 earnings per share for the current fiscal year.

Insider Activity at Teradyne

In other news, CEO Gregory Stephen Smith sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the sale, the chief executive officer owned 112,495 shares of the company's stock, valued at $47,810,375. This trade represents a 3.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by insiders.

Institutional Trading of Teradyne

Hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its holdings in Teradyne by 46,425.7% in the second quarter. California State Teachers Retirement System now owns 115,598,569 shares of the company's stock valued at $55,931,212,000 after buying an additional 115,350,107 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Teradyne during the 2nd quarter valued at about $9,404,408,000. Andar Capital Management HK Ltd purchased a new position in shares of Teradyne in the 2nd quarter valued at about $37,800,000. State Street Corp increased its stake in shares of Teradyne by 0.9% in the 4th quarter. State Street Corp now owns 7,078,635 shares of the company's stock valued at $1,370,141,000 after purchasing an additional 60,986 shares in the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in Teradyne by 3.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company's stock worth $442,413,000 after purchasing an additional 143,058 shares during the period. 99.77% of the stock is owned by hedge funds and other 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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