Teradyne (NASDAQ:TER) Stock Price Down 3.7% - Here's What Happened

Key Points

• Teradyne shares fell 3.7% to about $365.10 in mid-day trading, with volume 39% below the average session level.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $396.80; several firms recently raised targets as high as $550.
• The company reported a strong quarter, exceeding EPS and revenue estimates, with revenue up 103.9% year over year. Insiders sold $5.19 million of stock over the past 90 days, while institutional investors own 99.77% of shares.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s share price fell 3.7% during mid-day trading on Monday . The stock traded as low as $364.26 and last traded at $365.10. 2,370,677 shares were traded during mid-day trading, a decline of 39% from the average session volume of 3,859,050 shares. The stock had previously closed at $379.31.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Cantor Fitzgerald restated an "overweight" rating and issued a $550.00 price target on shares of Teradyne in a research report on Wednesday, July 29th. Bank of America upped their price target on Teradyne from $365.00 to $525.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. Stifel Nicolaus lifted their price objective on Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Citigroup increased their target price on shares of Teradyne from $325.00 to $400.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, Weiss Ratings upgraded shares of Teradyne from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday. One equities research 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. Based on data from MarketBeat.com, Teradyne has an average rating of "Moderate Buy" and a consensus target price of $396.80.

Teradyne Price Performance

The stock has a fifty day simple moving average of $383.46 and a two-hundred day simple moving average of $343.36. The firm has a market capitalization of $57.08 billion, a P/E ratio of 50.08, a P/E/G ratio of 0.77 and a beta of 1.78.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 EPS 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 the consensus estimate of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The company's quarterly revenue was up 103.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.57 EPS. As a group, sell-side analysts expect that Teradyne, Inc. will post 9.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Gregory Stephen Smith sold 4,000 shares of the stock in a transaction dated Monday, June 15th. The shares were 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 of the company's stock, valued at $50,962,424.10. This represents a 3.21% decrease in their position. The transaction 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. Also, insider Shannon John Poulin sold 656 shares of the firm's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $355.00, for a total value of $232,880.00. Following the completion of the sale, the insider owned 15,722 shares of the company's stock, valued at approximately $5,581,310. This represents a 4.01% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 14,261 shares of company stock valued at $5,187,344 over the last 90 days. Corporate insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd acquired a new position in shares of Teradyne during the fourth quarter valued at about $28,000. Community Financial Services Group LLC bought a new position in Teradyne in the 2nd quarter valued at about $29,000. McIlrath & Eck LLC bought a new position in Teradyne in the 1st quarter valued at about $30,000. Elevation Wealth Partners LLC boosted its stake in Teradyne by 1,320.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company's stock valued at $34,000 after purchasing an additional 66 shares during the last quarter. Finally, CYBER HORNET ETFs LLC acquired a new position in Teradyne during the 2nd quarter valued at about $35,000. 99.77% of the stock is owned by institutional investors and hedge funds.

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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