Teradyne (NASDAQ:TER) Trading Down 7.3% - Here's What Happened

Key Points

• Teradyne shares fell 7.3% to about $324.40 in Monday trading, with volume down 85% from the average session.
• Despite the decline, analysts maintain a generally positive outlook: the stock carries a “Moderate Buy” consensus rating and an average price target of $394.53, supported by recent target increases from UBS, Stifel, and Citigroup.
• Teradyne reported strong quarterly results, with revenue rising 87% year over year to $1.28 billion and EPS of $2.56, while also raising its quarterly dividend to $0.13 per share.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) shares traded down 7.3% during trading on Monday . The stock traded as low as $328.79 and last traded at $324.3970. Approximately 583,496 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 3,788,078 shares. The stock had previously closed at $349.92.

Analysts Set New Price Targets

Several brokerages have recently weighed in on TER. Stifel Nicolaus upped their target price on Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Weiss Ratings lowered shares of Teradyne from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, July 20th. UBS Group upped their price objective on shares of Teradyne from $440.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Zacks Research raised shares of Teradyne from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Finally, Citigroup lifted 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. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Teradyne has an average rating of "Moderate Buy" and an average price target of $394.53.

Teradyne Stock Down 6.5%

The stock has a market capitalization of $51.23 billion, a price-to-earnings ratio of 60.61, a price-to-earnings-growth ratio of 1.01 and a beta of 1.74. The business's 50-day moving average is $382.42 and its two-hundred day moving average is $333.65.

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

Teradyne Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were paid a $0.13 dividend. This is a boost from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. Teradyne's dividend payout ratio is 9.63%.

Insider Activity

In other news, insider Shannon John Poulin sold 1,008 shares of the stock in a transaction that occurred 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 completion of the sale, the insider owned 15,066 shares of the company's stock, valued at $5,203,344.42. This represents a 6.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at 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, VP Ryan Driscoll sold 680 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the sale, the vice president owned 7,665 shares of the company's stock, valued at $2,894,304. This represents a 8.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 14,941 shares of company stock valued at $5,444,112. 0.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Teradyne

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TER. Integrated Wealth Concepts LLC grew its holdings in shares of Teradyne by 12.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 4,136 shares of the company's stock worth $342,000 after purchasing an additional 468 shares during the period. Caxton Associates LLP acquired a new position in Teradyne in the first quarter valued at about $297,000. Cresset Asset Management LLC lifted its position in Teradyne by 11.6% in the second quarter. Cresset Asset Management LLC now owns 6,759 shares of the company's stock valued at $608,000 after buying an additional 702 shares during the last quarter. NewEdge Advisors LLC boosted its stake in Teradyne by 467.1% during the second quarter. NewEdge Advisors LLC now owns 3,408 shares of the company's stock worth $306,000 after buying an additional 2,807 shares during the period. Finally, Treasurer of the State of North Carolina increased its position in shares of Teradyne by 5.1% during the second quarter. Treasurer of the State of North Carolina now owns 75,125 shares of the company's stock valued at $6,755,000 after acquiring an additional 3,651 shares during the last quarter. 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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