Teradyne (NASDAQ:TER) Trading Down 6.4% - Here's What Happened

Key Points

• Teradyne shares fell 6.4% in midday trading, briefly touching $425.31 before last trading near $441.78, well below the prior close of $471.96. Trading volume was also far lighter than usual at 609,081 shares versus an average of 3.75 million.
• The company posted strong quarterly results, with EPS of $2.56 beating estimates by $0.45 and revenue of $1.28 billion topping forecasts. Revenue jumped 87% year over year, and analysts expect full-year EPS of 7.23.
• Wall Street sentiment remains broadly positive, with several firms raising price targets and JPMorgan upgrading the stock to overweight. Teradyne also increased its quarterly dividend to $0.13 per share, up from $0.12.

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'s stock price was down 6.4% during mid-day trading on Friday . The company traded as low as $425.31 and last traded at $441.7770. 609,081 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 3,746,416 shares. The stock had previously closed at $471.96.

Analyst Ratings Changes

TER has been the subject of several research reports. Susquehanna boosted their price target on Teradyne from $335.00 to $415.00 and gave the stock a "positive" rating in a research report on Thursday, April 9th. Evercore set a $370.00 price objective on shares of Teradyne in a report on Thursday, April 30th. JPMorgan Chase & Co. raised shares of Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 target price on the stock in a research note on Thursday, April 30th. Stifel Nicolaus boosted their target price on Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, April 28th. Finally, UBS Group upped their price target on Teradyne from $325.00 to $440.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $363.87.

Teradyne Price Performance

The company has a market capitalization of $68.80 billion, a PE ratio of 81.30, a P/E/G ratio of 1.23 and a beta of 1.79. The business's 50 day simple moving average is $380.63 and its 200 day simple moving average is $307.83.

Teradyne (NASDAQ:TER - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.45. The company had revenue of $1.28 billion during 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 firm's revenue for the quarter was up 87.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.75 earnings per share. As a group, analysts anticipate that Teradyne, Inc. will post 7.23 EPS for the current year.

Teradyne Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a dividend of $0.13 per share. The ex-dividend date was Thursday, May 21st. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. This is a boost from Teradyne's previous quarterly dividend of $0.12. Teradyne's dividend payout ratio (DPR) is currently 9.63%.

Insider Buying and Selling

In related news, VP Ryan Driscoll sold 680 shares of the business's 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 sale, the vice president directly owned 7,665 shares in the company, valued at approximately $2,894,304. The trade was a 8.15% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $355.00, for a total transaction of $232,880.00. Following the completion of the transaction, the insider directly owned 15,722 shares in the company, valued at $5,581,310. The trade was a 4.01% decrease in their position. The SEC filing for this sale provides additional information. 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 ninety days, insiders sold 14,941 shares of company stock valued at $5,444,112. 0.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Teradyne

A number of hedge funds have recently made changes to their positions in TER. Caitong International Asset Management Co. Ltd purchased a new stake in Teradyne in the fourth quarter valued at approximately $28,000. McIlrath & Eck LLC purchased a new position in shares of Teradyne during the first quarter worth $30,000. Davidson Capital Management Inc. acquired a new stake in shares of Teradyne in the third quarter valued at $31,000. CYBER HORNET ETFs LLC acquired a new stake in shares of Teradyne in the second quarter valued at $35,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Teradyne in the 4th quarter valued at $37,000. Hedge funds and other institutional investors own 99.77% of the company's stock.

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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