Teradyne (NASDAQ:TER) Stock Price Down 6.3% – What’s Next?

Shares of Teradyne, Inc. (NASDAQ:TER) dropped 6.3% on Thursday . The stock traded as low as $411.00 and last traded at $400.3830. Approximately 606,818 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 3,841,614 shares. The stock had previously closed at $427.34.

Analyst Ratings Changes

TER has been the subject of several research analyst reports. Susquehanna raised their target price on Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research report on Tuesday. Stifel Nicolaus boosted their price target on shares of Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a report on Tuesday, April 28th. Bank of America increased their price target on shares of Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Weiss Ratings upgraded shares of Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday, May 4th. Finally, Citigroup lifted their price objective on shares of Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Teradyne presently has a consensus rating of “Moderate Buy” and an average target price of $382.87.

Teradyne Stock Down 12.7%

The firm has a 50 day moving average of $387.13 and a 200 day moving average of $314.87. The firm has a market cap of $58.39 billion, a PE ratio of 69.22, a P/E/G ratio of 1.40 and a beta of 1.74.

Teradyne (NASDAQ:TER) last released its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.11 by $0.45. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.20 billion. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The business’s revenue for the quarter was up 87.0% on a year-over-year basis. During the same period last year, the business posted $0.75 earnings per share. On average, research analysts anticipate that Teradyne, Inc. will post 7.2 EPS for the current year.

Teradyne Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were paid 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 was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio is currently 9.63%.

Insider Buying and Selling

In related news, VP Ryan Driscoll sold 680 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $377.60, for a total value of $256,768.00. Following the sale, the vice president directly owned 7,665 shares in the company, valued at approximately $2,894,304. The trade was a 8.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Stephen Smith sold 4,000 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the sale, the chief executive officer directly owned 120,470 shares in the company, valued at approximately $50,962,424.10. This trade represents a 3.21% 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. In the last 90 days, insiders sold 14,941 shares of company stock valued at $5,444,112. 0.19% of the stock is owned by insiders.

Institutional Trading of Teradyne

Several hedge funds and other institutional investors have recently modified their holdings of the business. ARK Investment Management LLC raised its stake in shares of Teradyne by 25.2% during the 3rd quarter. ARK Investment Management LLC now owns 2,722,327 shares of the company’s stock valued at $374,701,000 after purchasing an additional 548,140 shares during the period. Nordea Investment Management AB boosted its stake in Teradyne by 656.4% in the 4th quarter. Nordea Investment Management AB now owns 125,312 shares of the company’s stock worth $24,554,000 after purchasing an additional 108,745 shares during the period. Gouws Capital LLC boosted its stake in Teradyne by 96.0% in the 4th quarter. Gouws Capital LLC now owns 15,323 shares of the company’s stock worth $2,966,000 after purchasing an additional 7,505 shares during the period. Assenagon Asset Management S.A. boosted its stake in Teradyne by 3,233.4% in the 4th quarter. Assenagon Asset Management S.A. now owns 910,023 shares of the company’s stock worth $176,144,000 after purchasing an additional 882,723 shares during the period. Finally, Wealthfront Advisers LLC grew its holdings in Teradyne by 56.0% during the 4th quarter. Wealthfront Advisers LLC now owns 29,336 shares of the company’s stock valued at $5,678,000 after buying an additional 10,526 shares in the last quarter. 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.