Teradyne (NASDAQ:TER) Trading 8.4% Higher – Still a Buy?

Teradyne, Inc. (NASDAQ:TER) shares shot up 8.4% during trading on Thursday . The stock traded as high as $463.60 and last traded at $462.8960. 2,082,183 shares changed hands during trading, a decline of 44% from the average session volume of 3,730,058 shares. The stock had previously closed at $427.20.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Susquehanna lifted their price target on shares of Teradyne from $335.00 to $415.00 and gave the company a “positive” rating in a research note on Thursday, April 9th. Cantor Fitzgerald increased their price objective on shares of Teradyne from $330.00 to $400.00 and gave the stock an “overweight” rating in a research note on Thursday, April 9th. Bank of America raised their price objective on Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday. JPMorgan Chase & Co. raised Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price on the stock in a research report on Thursday, April 30th. Finally, UBS Group upped their target price on Teradyne from $325.00 to $440.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $363.87.

Teradyne Stock Up 8.7%

The stock’s fifty day moving average is $378.50 and its two-hundred day moving average is $305.92. The firm has a market capitalization of $72.72 billion, a price-to-earnings ratio of 86.10, a P/E/G ratio of 1.73 and a beta of 1.79.

Teradyne (NASDAQ:TER) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, beating analysts’ consensus estimates of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter last year, the company posted $0.75 earnings per share. The company’s revenue for the quarter was up 87.0% compared to the same quarter last year. As a group, analysts anticipate that Teradyne, Inc. will post 7.09 EPS for the current year.

Teradyne Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s payout ratio is currently 9.63%.

Insider Activity at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the transaction, the chief executive officer owned 120,470 shares of the company’s stock, valued at $50,962,424.10. The trade was a 3.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Ryan Driscoll sold 680 shares of the company’s stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares in the company, valued at $2,894,304. This represents a 8.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 14,941 shares of company stock worth $5,444,112. Insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

A number of large investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd acquired a new stake in Teradyne during the 4th quarter valued at $28,000. McIlrath & Eck LLC acquired a new position in shares of Teradyne in the first quarter valued at $30,000. Davidson Capital Management Inc. acquired a new position in shares of Teradyne in the third quarter valued at $31,000. CYBER HORNET ETFs LLC bought a new position in shares of Teradyne in the second quarter valued at about $35,000. Finally, Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Teradyne in the fourth quarter valued at about $37,000. Institutional investors own 99.77% of the company’s stock.

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.