Teradyne (NASDAQ:TER) Trading Down 6.3% - Here's What Happened

Key Points

• Teradyne shares fell 6.3% in intraday trading, with the stock last seen around $400.38 after opening from a prior close of $427.34.
• Despite the pullback, analysts remain generally constructive: the stock carries a Moderate Buy consensus, and several firms recently raised price targets, with an average target price of $382.87.
• Teradyne reported better-than-expected quarterly results earlier this year, including EPS of $2.56 versus $2.11 expected and revenue up 87% year over year, while also increasing its quarterly dividend to $0.13 per share.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s stock price was down 6.3% during mid-day trading on Thursday . The stock traded as low as $411.00 and last traded at $400.3830. Approximately 606,818 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 3,841,614 shares. The stock had previously closed at $427.34.

Analyst Ratings Changes

Several equities research analysts have recently commented on TER shares. Evercore set a $370.00 price objective on Teradyne in a report on Thursday, April 30th. The Goldman Sachs Group lifted their price target on shares of Teradyne from $300.00 to $350.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Robert W. Baird boosted their price target on shares of Teradyne from $350.00 to $446.00 and gave the company an "outperform" rating in a research note on Tuesday, June 23rd. Citigroup boosted their price target on shares of Teradyne from $325.00 to $400.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Finally, Zacks Research upgraded shares of Teradyne from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $382.87.

Teradyne Trading Down 12.7%

The business has a fifty day simple moving average of $387.13 and a 200 day simple moving average of $314.87. The stock has a market capitalization of $58.39 billion, a P/E ratio of 69.22, a price-to-earnings-growth ratio of 1.40 and a beta of 1.74.

Teradyne (NASDAQ:TER - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, beating analysts' consensus estimates of $2.11 by $0.45. The company had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.20 billion. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The company's revenue for the quarter was up 87.0% on a year-over-year basis. During the same quarter last year, the company earned $0.75 earnings per share. As a group, research analysts forecast that Teradyne, Inc. will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

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

Insider Buying and Selling at Teradyne

In other news, VP Ryan Driscoll sold 680 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares in the company, valued at $2,894,304. This represents a 8.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the completion of the sale, the insider owned 15,066 shares of the company's stock, valued at approximately $5,203,344.42. This represents a 6.27% decrease in their position. 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. In the last three months, insiders have sold 14,941 shares of company stock worth $5,444,112. Corporate insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vestor Capital LLC increased its stake in Teradyne by 15.4% in the 1st quarter. Vestor Capital LLC now owns 285 shares of the company's stock valued at $85,000 after buying an additional 38 shares during the last quarter. UMB Bank n.a. boosted its stake in shares of Teradyne by 1.8% in the 4th quarter. UMB Bank n.a. now owns 2,293 shares of the company's stock worth $444,000 after buying an additional 40 shares during the last quarter. Stephens Inc. AR grew its holdings in shares of Teradyne by 1.2% in the fourth quarter. Stephens Inc. AR now owns 3,332 shares of the company's stock valued at $645,000 after acquiring an additional 41 shares in the last quarter. Sapient Capital LLC grew its holdings in shares of Teradyne by 1.5% in the fourth quarter. Sapient Capital LLC now owns 2,849 shares of the company's stock valued at $560,000 after acquiring an additional 43 shares in the last quarter. Finally, Whittier Trust Co. increased its position in shares of Teradyne by 5.5% during the first quarter. Whittier Trust Co. now owns 827 shares of the company's stock valued at $261,000 after acquiring an additional 43 shares during the last quarter. 99.77% of the stock is currently owned by hedge funds and other 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.

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