Teradyne (NASDAQ:TER) Shares Down 3.2% – Should You Sell?

Teradyne, Inc. (NASDAQ:TER) shares dropped 3.2% during trading on Tuesday. The stock traded as low as $427.04 and last traded at $430.32. 1,993,970 shares traded hands during mid-day trading, a decline of 44% from the average session volume of 3,556,697 shares. The stock had previously closed at $444.53.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne introduced the Titan HP platform, which adds burn-in capabilities for advanced AI data-center devices. The system is designed to reduce testing costs and factory-floor requirements while helping customers accelerate production. Teradyne Introduces Titan HP Platform with Burn-In Capabilities
• Positive Sentiment: Teradyne made a strategic investment in Bright Machines and plans to combine its robotics and automated-test systems with Bright Machines’ software-defined manufacturing platform. The partnership could strengthen Teradyne’s position in AI infrastructure and data-center manufacturing. The investment amount was not disclosed. Teradyne Bright Machines Investment
• Positive Sentiment: Analyst commentary remains constructive on Teradyne’s AI-driven memory-test growth and upbeat third-quarter outlook. The company’s recent momentum is also supported by demand for semiconductor testing, robotics and physical-AI applications. Teradyne Gains 130 Percent YTD
• Positive Sentiment: The launch of the Magnum E2 product adds another potential catalyst for Teradyne’s test-equipment business. Teradyne Launches Magnum E2

Wall Street Analysts Forecast Growth

TER has been the topic of several recent research reports. Evercore reiterated an “outperform” rating and issued a $420.00 price target on shares of Teradyne in a report on Thursday, July 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. The Goldman Sachs Group reaffirmed a “buy” rating and set a $465.00 target price on shares of Teradyne in a research report on Tuesday, July 28th. Wall Street Zen cut Teradyne from a “buy” rating to a “hold” rating in a report on Monday, September 28th. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a research report on Wednesday, July 29th. Eleven investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, Teradyne currently has a consensus rating of “Moderate Buy” and a consensus price target of $396.80.

Teradyne Stock Performance

The company has a market cap of $67.28 billion, a price-to-earnings ratio of 59.03, a price-to-earnings-growth ratio of 0.91 and a beta of 1.75. The stock’s fifty day moving average is $377.28 and its two-hundred day moving average is $369.42.

Teradyne (NASDAQ:TER) last released its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The company’s quarterly revenue was up 103.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.57 EPS. On average, equities research analysts expect that Teradyne, Inc. will post 9.11 EPS for the current year.

Teradyne Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were issued a dividend of $0.13 per share. The ex-dividend date was Friday, September 4th. This represents a $0.52 annualized dividend and a yield of 0.1%. Teradyne’s dividend payout ratio is 7.13%.

Insider Buying and Selling

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the transaction, the chief executive officer directly owned 108,495 shares in the company, valued at approximately $36,652,865.85. This trade represents a 3.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Carolina Wealth Advisors LLC boosted its stake in shares of Teradyne by 42.5% during the second quarter. Carolina Wealth Advisors LLC now owns 114 shares of the company’s stock valued at $55,000 after purchasing an additional 34 shares in the last quarter. Vestor Capital LLC raised its stake in Teradyne by 15.4% in the first quarter. Vestor Capital LLC now owns 285 shares of the company’s stock worth $85,000 after buying an additional 38 shares in the last quarter. Ashton Thomas Private Wealth LLC lifted its holdings in Teradyne by 5.8% during the second quarter. Ashton Thomas Private Wealth LLC now owns 727 shares of the company’s stock worth $352,000 after buying an additional 40 shares during the period. Whittier Trust Co. boosted its position in Teradyne by 5.5% during the 1st quarter. Whittier Trust Co. now owns 827 shares of the company’s stock valued at $261,000 after acquiring an additional 43 shares in the last quarter. Finally, Contravisory Investment Management Inc. boosted its position in Teradyne by 1.0% during the 2nd quarter. Contravisory Investment Management Inc. now owns 4,661 shares of the company’s stock valued at $2,255,000 after acquiring an additional 44 shares in the last quarter. 99.77% of the stock is owned by institutional investors.

Teradyne Company Profile

Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.

Teradyne’s products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.

Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.