Teradyne (NASDAQ:TER) Shares Gap Up - Should You Buy?

Key Points

• Teradyne shares opened at $126.46 after a gap up, reaching a last trade price of $130.13 with significant trading volume.
• Analysts have set new price targets, with Susquehanna raising Teradyne's target from $133.00 to $200.00 and the consensus rating at "Moderate Buy" with an average price target of $118.63.
• Teradyne recently declared a quarterly dividend of $0.12 per share, representing an annual yield of 0.4%, with a payout ratio of 16.61%.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $119.85, but opened at $126.46. Teradyne shares last traded at $130.13, with a volume of 1,612,831 shares changing hands.

Analysts Set New Price Targets

TER has been the topic of several analyst reports. Susquehanna increased their price target on Teradyne from $133.00 to $200.00 and gave the stock a "positive" rating in a research report on Monday. Morgan Stanley upgraded 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 report on Thursday, July 31st. Wall Street Zen upgraded shares of Teradyne from a "sell" rating to a "hold" rating in a report on Monday, September 1st. The Goldman Sachs Group reaffirmed a "sell" rating and set a $85.00 price objective on shares of Teradyne in a research report on Wednesday, July 30th. Finally, UBS Group restated a "buy" rating and issued a $130.00 price objective (up previously from $120.00) on shares of Teradyne in a research note on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $118.63.

Teradyne Trading Up 12.8%

The company's fifty day moving average is $108.33 and its 200-day moving average is $91.73. The firm has a market capitalization of $21.50 billion, a P/E ratio of 46.49, a P/E/G ratio of 2.52 and a beta of 1.80.

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

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Friday, September 5th will be paid a $0.12 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $0.48 dividend on an annualized basis and a yield of 0.4%. Teradyne's payout ratio is presently 16.61%.

Insiders Place Their Bets

In other news, CEO Gregory Stephen Smith sold 554 shares of Teradyne stock in a transaction that occurred on Friday, September 12th. The shares were sold at an average price of $115.00, for a total value of $63,710.00. Following the sale, the chief executive officer directly owned 96,439 shares in the company, valued at $11,090,485. This trade represents a 0.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold a total of 1,662 shares of company stock valued at $181,008 over the last 90 days. Insiders own 0.16% of the company's stock.

Institutional Investors Weigh In On Teradyne

A number of institutional investors have recently modified their holdings of the business. Berbice Capital Management LLC raised its stake in Teradyne by 200.0% during the first quarter. Berbice Capital Management LLC now owns 300 shares of the company's stock worth $25,000 after acquiring an additional 200 shares in the last quarter. CYBER HORNET ETFs LLC bought a new position in shares of Teradyne in the 2nd quarter worth $35,000. Manchester Capital Management LLC lifted its holdings in shares of Teradyne by 44.7% in the 1st quarter. Manchester Capital Management LLC now owns 453 shares of the company's stock worth $37,000 after purchasing an additional 140 shares in the last quarter. Brooklyn Investment Group lifted its stake in Teradyne by 189.9% during the 1st quarter. Brooklyn Investment Group now owns 461 shares of the company's stock valued at $38,000 after acquiring an additional 302 shares in the last quarter. Finally, Steph & Co. bought a new stake in shares of Teradyne during the 2nd quarter worth $43,000. Institutional investors own 99.77% of the company's stock.

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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