Teradyne (NASDAQ:TER) Stock Falls 3.2% – Here’s Why

Teradyne, Inc. (NASDAQ:TER)’s stock price dropped 3.2% on Thursday. The company traded as low as $388.85 and last traded at $398.72. 3,318,687 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 3,548,806 shares. The stock had previously closed at $411.78.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne launched the Titan HP platform, adding burn-in capabilities designed to test advanced AI data-center devices. The product could support demand from AI-chip manufacturers and strengthen Teradyne’s semiconductor-test portfolio. Teradyne Introduces Titan HP Platform
• Positive Sentiment: The company’s Magnum E2 memory-test system targets advanced DRAM and high-speed NAND flash applications, providing another potential growth avenue tied to AI and data-center infrastructure. Teradyne Magnum E2
• Positive Sentiment: Teradyne Robotics and Elite Robots settled a collaborative-robot dispute, removing a legal uncertainty affecting the robotics business. Robotics Dispute Settlement
• Positive Sentiment: Teradyne and Bright Machines plan to combine Teradyne’s robotics and test technologies with Bright Machines’ software-defined manufacturing platform, potentially expanding automated-factory opportunities. Teradyne and Bright Machines Collaboration
• Neutral Sentiment: Teradyne is approaching its October earnings release. Analysts reportedly expect strong triple-digit year-over-year EPS growth, raising expectations for the results and management outlook. Teradyne Earnings Preview
• Negative Sentiment: Teradyne traded lower alongside IPG Photonics, Nova, NXP Semiconductors, and Microchip Technology in a broader semiconductor selloff, indicating sector-wide risk rather than a company-specific catalyst. Semiconductor Stocks Trade Down
• Negative Sentiment: Reports said Teradyne underperformed competitors and declined ahead of earnings, suggesting investors may be taking profits or reducing risk before the results. Teradyne Underperforms Competitors
• Negative Sentiment: An investor commentary expressed caution about Teradyne despite strong AI demand, highlighting concerns about competitive positioning and execution. Cathie Wood’s reported sale of Teradyne shares may add to negative sentiment. Caution on Teradyne Cathie Wood Sells Teradyne

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. Morgan Stanley lifted their target price on Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Zacks Research lowered Teradyne from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Evercore reaffirmed an “outperform” rating and issued a $420.00 target price on shares of Teradyne in a research report on Thursday, July 30th. Wall Street Zen cut Teradyne from a “buy” rating to a “hold” rating in a research note on Monday, September 28th. Finally, Weiss Ratings raised shares of Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 29th. Eleven analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, Teradyne currently has a consensus rating of “Moderate Buy” and a consensus price target of $396.80.

Teradyne Price Performance

The stock has a market capitalization of $62.34 billion, a P/E ratio of 54.69, a price-to-earnings-growth ratio of 0.87 and a beta of 1.75. The company has a fifty day moving average of $381.31 and a two-hundred day moving average of $371.11.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter in the prior year, the firm posted $0.57 earnings per share. Teradyne’s revenue for the quarter was up 103.9% compared to the same quarter last year. As a group, equities research analysts predict that Teradyne, Inc. will post 9.11 EPS for the current fiscal year.

Teradyne Announces Dividend

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

Insider Transactions at Teradyne

In related 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 $36,652,865.85. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by company insiders.

Institutional Trading of Teradyne

Institutional investors have recently added to or reduced their stakes in the business. Community Financial Services Group LLC acquired a new stake in shares of Teradyne during the second quarter worth $29,000. Elevation Wealth Partners LLC grew its position in shares of Teradyne by 1,320.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock valued at $34,000 after buying an additional 66 shares during the last quarter. Mcdonald Partners LLC bought a new stake in shares of Teradyne during the 2nd quarter valued at about $36,000. Hilltop National Bank acquired a new stake in Teradyne during the second quarter worth about $41,000. Finally, McIlrath & Eck LLC acquired a new stake in Teradyne during the first quarter worth about $30,000. Institutional investors own 99.77% of the company’s stock.

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.