Teradyne's (TER) "Overweight" Rating Reiterated at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reaffirmed its “Overweight” rating on Teradyne and set a $550 price target, implying approximately 71% upside from the reported share price.
• Teradyne reported strong quarterly results, with revenue up 103.9% year over year to $1.33 billion and EPS of $2.47, beating analyst expectations. Management also issued third-quarter revenue and EPS guidance above Wall Street estimates, supported by demand for semiconductor test equipment tied to AI development.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and average price target of $394.53, although the stock trades at a high valuation near 59 times earnings. Institutional investors own nearly 99.8% of shares, while insiders have sold shares worth about $5.4 million over the past 90 days.

Teradyne (NASDAQ:TER - Get Free Report)'s stock had its "overweight" rating reaffirmed by equities research analysts at Cantor Fitzgerald in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $550.00 price objective on the stock. Cantor Fitzgerald's price objective would suggest a potential upside of 71.30% from the stock's current price.

Several other equities analysts have also commented on the company. Evercore set a $370.00 target price on Teradyne in a research note on Thursday, April 30th. The Goldman Sachs Group restated a "buy" rating and issued a $465.00 price target on shares of Teradyne in a report on Tuesday. Morgan Stanley set a $387.00 price objective on shares of Teradyne in a research note on Thursday, April 30th. Robert W. Baird boosted their target price on shares of Teradyne from $350.00 to $446.00 and gave the company an "outperform" rating in a report on Tuesday, June 23rd. Finally, Bank of America upped their price target on shares of Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Teradyne has a consensus rating of "Moderate Buy" and an average price target of $394.53.

Teradyne Trading Down 4.1%

Teradyne stock opened at $321.07 on Wednesday. The stock has a market cap of $50.26 billion, a PE ratio of 59.46, a P/E/G ratio of 0.97 and a beta of 1.74. The stock has a 50-day moving average price of $382.68 and a 200 day moving average price of $335.09. Teradyne has a 52 week low of $89.18 and a 52 week high of $487.91.

Teradyne (NASDAQ:TER - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.38. The firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The firm's revenue for the quarter was up 103.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.57 EPS. On average, equities analysts predict that Teradyne will post 7.2 EPS for the current year.

Insiders Place Their Bets

In other news, VP Ryan Driscoll sold 680 shares of Teradyne stock in a transaction that occurred on Thursday, May 7th. The shares were 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 in the company, valued at $2,894,304. This trade represents a 8.15% decrease in their ownership of the stock. The transaction 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, CEO Gregory Stephen Smith sold 8,597 shares of the business's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the transaction, the chief executive officer directly owned 124,470 shares in the company, valued at approximately $42,192,840.60. The trade was a 6.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,941 shares of company stock worth $5,444,112 in the last 90 days. 0.19% of the stock is owned by company insiders.

Institutional Trading of Teradyne

Hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp raised its position in shares of Teradyne by 0.9% in the 4th quarter. State Street Corp now owns 7,078,635 shares of the company's stock valued at $1,370,141,000 after purchasing an additional 60,986 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in Teradyne by 3.0% in the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company's stock valued at $442,413,000 after acquiring an additional 143,058 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Teradyne by 18.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company's stock worth $813,640,000 after purchasing an additional 659,273 shares during the last quarter. Invesco Ltd. grew its stake in Teradyne by 3.5% in the third quarter. Invesco Ltd. now owns 2,959,330 shares of the company's stock worth $407,322,000 after purchasing an additional 99,864 shares in the last quarter. Finally, Morgan Stanley increased its holdings in Teradyne by 1.9% in the fourth quarter. Morgan Stanley now owns 2,442,014 shares of the company's stock valued at $472,677,000 after buying an additional 45,089 shares during the last quarter. 99.77% of the stock is owned by hedge funds and other institutional investors.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne reported second-quarter revenue of $1.329 billion, up 103.9% year over year and above the $1.22 billion analyst consensus. Non-GAAP earnings were $2.47 per share, topping expectations near $2.09 and rising sharply from $0.57 a year earlier. Semiconductor Test generated $1.122 billion of revenue, the primary driver of the result. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Management forecast third-quarter revenue of approximately $1.2 billion to $1.3 billion and EPS of $1.85 to $2.15. The revenue midpoint of $1.25 billion and EPS midpoint of $2.00 were well above Wall Street expectations of roughly $1.0 billion and $1.43, respectively. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Positive Sentiment: The outlook suggests continued investment in wafer-fabrication equipment as chipmakers develop more powerful processors for AI data centers and vehicles. This supports demand for Teradyne’s higher-value automated test systems and was cited as the reason shares rose sharply in after-hours trading. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Neutral Sentiment: Despite the strong results, Teradyne remains a high-expectation stock: its P/E ratio is about 59 and its shares had recently pulled back substantially after a powerful year-long rally. Investors may therefore continue to scrutinize whether AI-driven growth can justify the valuation and sustain the elevated earnings outlook.

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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