Teradyne (NASDAQ:TER) Trading Down 7.8% - Here's Why

Key Points

• Teradyne shares fell 7.8% to about $408.38, with trading volume roughly 88% below the average session volume.
• Despite the decline, analysts remain broadly bullish: the stock carries a “Moderate Buy” consensus rating, with an average price target of $396.80 and several firms recently raising their targets.
• Teradyne reported strong quarterly results, including $2.47 in EPS versus a $2.09 estimate and $1.33 billion in revenue, up 103.9% year over year. Insiders sold 5,664 shares worth about $2.27 million during the last quarter.

Teradyne, Inc. (NASDAQ:TER - Get Free Report) shares fell 7.8% on Tuesday . The stock traded as low as $406.65 and last traded at $408.3810. 471,232 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 3,786,390 shares. The stock had previously closed at $443.14.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Zacks Research raised shares of Teradyne from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Evercore restated an "outperform" rating and set a $420.00 target price on shares of Teradyne in a research report on Thursday, July 30th. Susquehanna increased their price target on Teradyne from $415.00 to $550.00 and gave the stock a "positive" rating in a report on Tuesday, June 30th. Bank of America boosted their price objective on Teradyne from $365.00 to $525.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $465.00 price objective on shares of Teradyne in a research report on Tuesday, July 28th. One investment 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 stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $396.80.

Teradyne Stock Down 9.8%

The stock's 50 day moving average is $385.63 and its two-hundred day moving average is $350.65. The company has a market capitalization of $62.51 billion, a PE ratio of 54.92, a price-to-earnings-growth ratio of 0.85 and a beta of 1.78.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm's quarterly revenue was up 103.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.57 EPS. On average, sell-side analysts predict that Teradyne, Inc. will post 9.1 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Gregory Stephen Smith sold 4,000 shares of Teradyne stock in a transaction on Monday, June 15th. The stock was sold at an average price of $423.03, for a total value of $1,692,120.00. Following the transaction, the chief executive officer directly owned 120,470 shares in the company, valued at approximately $50,962,424.10. This trade represents a 3.21% decrease in their position. The sale 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. Also, insider Shannon John Poulin sold 1,008 shares of the business's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $345.37, for a total value of $348,132.96. Following the completion of the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Over the last quarter, insiders have sold 5,664 shares of company stock worth $2,273,133. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Teradyne

Large investors have recently added to or reduced their stakes in the company. Community Financial Services Group LLC purchased a new position in shares of Teradyne in the 2nd quarter worth approximately $29,000. Elevation Wealth Partners LLC lifted its position in Teradyne by 1,320.0% during the second quarter. Elevation Wealth Partners LLC now owns 71 shares of the company's stock valued at $34,000 after acquiring an additional 66 shares during the last quarter. Mcdonald Partners LLC purchased a new stake in Teradyne during the second quarter valued at approximately $36,000. Hilltop National Bank acquired a new stake in Teradyne in the second quarter valued at approximately $41,000. Finally, McIlrath & Eck LLC acquired a new stake in Teradyne in the first quarter valued at approximately $30,000. 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.

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