Teradyne (NASDAQ:TER) Shares Down 7.8% – Should You Sell?

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

Analysts Set New Price Targets

A number of analysts have recently weighed in on TER shares. Citigroup raised their price objective on Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a research note on Wednesday, July 29th. Stifel Nicolaus raised their price target on Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a report on Tuesday, April 28th. UBS Group boosted their price target on Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $465.00 price objective on shares of Teradyne in a report on Tuesday, July 28th. One equities research 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 company currently has a consensus rating of “Moderate Buy” and an average target price of $396.80.

Teradyne Stock Down 9.8%

The company’s 50 day moving average price is $385.63 and its 200 day moving average price is $350.65. The firm has a market capitalization of $62.51 billion, a price-to-earnings ratio of 54.92, a P/E/G ratio of 0.85 and a beta of 1.78.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the previous year, the company earned $0.57 earnings per share. The business’s quarterly revenue was up 103.9% compared to the same quarter last year. As a group, analysts expect that Teradyne, Inc. will post 9.1 earnings per share for the current year.

Insider Activity

In other news, CEO Gregory Stephen Smith sold 4,000 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 120,470 shares in the company, valued at $50,962,424.10. This trade represents a 3.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $355.00, for a total value of $232,880.00. Following the completion of the transaction, the insider owned 15,722 shares of the company’s stock, valued at approximately $5,581,310. The trade was a 4.01% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 5,664 shares of company stock worth $2,273,133. Company insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

Large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd purchased a new position in Teradyne during the 4th quarter worth approximately $28,000. Community Financial Services Group LLC acquired a new stake in Teradyne during the 2nd quarter valued at approximately $29,000. McIlrath & Eck LLC purchased a new stake in shares of Teradyne in the 1st quarter valued at $30,000. Elevation Wealth Partners LLC boosted its holdings in shares of Teradyne by 1,320.0% in the 2nd 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. Finally, CYBER HORNET ETFs LLC acquired a new stake in shares of Teradyne in the second quarter worth $35,000. Hedge funds and other 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.