Zacks Research Downgrades Teradyne (NASDAQ:TER) to Hold

Key Points

• Zacks Research downgraded Teradyne (NASDAQ:TER) from a "strong-buy" to a "hold" rating in a note issued Monday.
• Other analysts remain largely positive — including Cantor Fitzgerald raising its target to $400 and Citigroup to $325 — with 10 Buys vs. 7 Holds and a MarketBeat consensus rating of "Moderate Buy" and a consensus target of $289.53.
• Teradyne recently reported an earnings beat (Q EPS $1.80 vs. $1.36 expected; revenue $1.08B vs. $970M, +43.9% YoY) while trading at a high valuation (market cap $57.2B, P/E ~105 and recent price around $365.51).

Teradyne (NASDAQ:TER - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on TER. Cantor Fitzgerald boosted their target price on Teradyne from $330.00 to $400.00 and gave the stock an "overweight" rating in a research note on Thursday, April 9th. Wall Street Zen raised shares of Teradyne from a "hold" rating to a "buy" rating in a research report on Saturday, February 21st. Evercore boosted their price target on shares of Teradyne from $200.00 to $280.00 and gave the company an "outperform" rating in a research report on Monday, February 2nd. Morgan Stanley set a $306.00 price target on shares of Teradyne in a research report on Wednesday, February 11th. Finally, Citigroup boosted their price target on shares of Teradyne from $215.00 to $325.00 and gave the company a "buy" rating in a research report on Wednesday, February 4th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, Teradyne presently has an average rating of "Moderate Buy" and a consensus target price of $289.53.

Teradyne Trading Down 1.2%

Teradyne stock opened at $365.51 on Monday. The stock has a market cap of $57.22 billion, a P/E ratio of 105.03, a price-to-earnings-growth ratio of 2.24 and a beta of 1.79. The company has a fifty day simple moving average of $312.10 and a 200-day simple moving average of $230.77. Teradyne has a 12-month low of $68.24 and a 12-month high of $373.00.

Teradyne (NASDAQ:TER - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The company reported $1.80 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.44. The firm had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $970.44 million. Teradyne had a return on equity of 22.68% and a net margin of 17.37%.The firm's revenue was up 43.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.95 earnings per share. As a group, sell-side analysts forecast that Teradyne will post 3.88 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Teradyne

A number of institutional investors and hedge funds have recently made changes to their positions in the business. UMB Bank n.a. raised its holdings in shares of Teradyne by 1.8% in the fourth quarter. UMB Bank n.a. now owns 2,293 shares of the company's stock valued at $444,000 after buying an additional 40 shares during the last quarter. Stephens Inc. AR raised its stake in shares of Teradyne by 1.2% during the fourth quarter. Stephens Inc. AR now owns 3,332 shares of the company's stock worth $645,000 after purchasing an additional 41 shares during the last quarter. Sapient Capital LLC raised its stake in shares of Teradyne by 1.5% during the fourth quarter. Sapient Capital LLC now owns 2,849 shares of the company's stock worth $560,000 after purchasing an additional 43 shares during the last quarter. Truvestments Capital LLC raised its stake in shares of Teradyne by 3.8% during the fourth quarter. Truvestments Capital LLC now owns 1,440 shares of the company's stock worth $279,000 after purchasing an additional 53 shares during the last quarter. Finally, IFP Advisors Inc raised its stake in shares of Teradyne by 2.1% during the fourth quarter. IFP Advisors Inc now owns 2,731 shares of the company's stock worth $529,000 after purchasing an additional 57 shares during the last quarter. 99.77% of the stock is 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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