Teradyne (NASDAQ:TER) Shares Up 8.4% - Here's Why

Key Points

• Teradyne shares jumped 8.4% after the company’s strong quarterly results and a flurry of positive analyst commentary helped boost sentiment. The stock traded as high as $463.60, well above its prior close of $427.20.
• Teradyne beat Wall Street expectations with Q1 EPS of $2.56 versus $2.11 expected and revenue of $1.28 billion versus $1.20 billion forecast. Revenue also surged 87% year over year, and analysts now expect full-year EPS of 7.09.
• Analyst targets have moved higher, including Bank of America’s increase to $525 and UBS’s raise to $440, though the average target remains below the current share price at $363.87. The company also lifted its quarterly dividend to $0.13 from $0.12.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s stock price was up 8.4% on Thursday . The stock traded as high as $463.60 and last traded at $462.8960. 2,082,183 shares traded hands during mid-day trading, a decline of 44% from the average daily volume of 3,730,058 shares. The stock had previously closed at $427.20.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on TER shares. Morgan Stanley set a $387.00 target price on Teradyne in a research report on Thursday, April 30th. Zacks Research upgraded shares of Teradyne from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Cantor Fitzgerald lifted their price objective on shares of Teradyne from $330.00 to $400.00 and gave the stock an "overweight" rating in a research note on Thursday, April 9th. UBS Group boosted their price objective on shares of Teradyne from $325.00 to $440.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Finally, Bank of America upped their target price on shares of Teradyne from $365.00 to $525.00 and gave the company a "buy" rating in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $363.87.

Teradyne Price Performance

The company has a market cap of $72.72 billion, a price-to-earnings ratio of 86.10, a price-to-earnings-growth ratio of 1.73 and a beta of 1.79. The stock has a 50-day moving average price of $378.50 and a 200 day moving average price of $305.92.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.11 by $0.45. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period in the previous year, the firm earned $0.75 EPS. Teradyne's quarterly revenue was up 87.0% compared to the same quarter last year. Sell-side analysts expect that Teradyne, Inc. will post 7.09 EPS for the current fiscal year.

Teradyne Increases Dividend

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

Insider Activity

In related news, insider Shannon John Poulin sold 1,008 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total value of $348,132.96. Following the sale, the insider directly owned 15,066 shares of the company's stock, valued at approximately $5,203,344.42. The trade was a 6.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the completion of the transaction, the chief executive officer directly 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 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 quarter. 0.19% of the stock is currently owned by company insiders.

Institutional Trading of Teradyne

Institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd bought a new position in shares of Teradyne during the fourth quarter worth about $28,000. McIlrath & Eck LLC acquired a new position in Teradyne during the 1st quarter worth approximately $30,000. Davidson Capital Management Inc. acquired a new position in Teradyne during the 3rd quarter worth approximately $31,000. CYBER HORNET ETFs LLC bought a new position in shares of Teradyne during the 2nd quarter worth approximately $35,000. Finally, Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Teradyne during the 4th quarter worth approximately $37,000. 99.77% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.