Teradyne (NASDAQ:TER) Trading Down 7.8% Following Insider Selling

Shares of Teradyne, Inc. (NASDAQ:TER) were down 7.8% during trading on Tuesday after an insider sold shares in the company. The company traded as low as $406.65 and last traded at $408.3810. 471,232 shares were traded during mid-day trading, a decline of 88% from the average session volume of 3,786,390 shares. The stock had previously closed at $443.14.

Specifically, CEO Gregory Stephen Smith sold 4,000 shares of Teradyne stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the sale, the chief executive officer owned 112,495 shares of the company’s stock, valued at approximately $47,810,375. This trade represents a 3.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on TER shares. Weiss Ratings upgraded Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, August 6th. Susquehanna lifted their price target on shares of Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a research note on Tuesday, June 30th. Citigroup boosted their price target on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Robert W. Baird set a $420.00 price objective on shares of Teradyne in a report on Thursday, July 30th. Finally, Morgan Stanley upped their target price on shares of Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. One 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 company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $396.80.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s latest quarterly results remain a fundamental support: revenue rose 103.9% year over year to $1.33 billion, while adjusted earnings of $2.47 per share exceeded the $2.09 analyst consensus. Management also provided solid forward guidance, reinforcing expectations for continued demand for semiconductor test equipment tied to AI infrastructure. Chip Equipment Stocks Selloff
• Positive Sentiment: Institutional interest is mixed but generally constructive, with 815 investors adding shares during the latest quarter versus 638 reducing positions. JPMorgan, Invesco and BlackRock were among the largest reported buyers, while Teradyne maintains a predominantly positive analyst outlook and a median recent price target of $443. Teradyne Selloff Analysis
• Neutral Sentiment: CEO Gregory Smith sold 4,000 shares for approximately $1.7 million, and director Marilyn Matz sold 1,200 shares at $425. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, reducing their usefulness as signals about management’s current view of the company. Teradyne Insider Transactions
• Negative Sentiment: The immediate pressure appears sector-wide rather than company-specific. Semiconductor test-equipment stocks, including Teradyne, Aehr Test Systems and FormFactor, are being sold as investors reduce exposure to high-growth AI winners. No new Teradyne earnings warning or adverse company announcement was identified. Semiconductor Test Equipment Selloff
• Negative Sentiment: Higher Treasury yields—particularly a 30-year yield at a multiyear high—are pressuring richly valued technology stocks. Teradyne’s elevated valuation following a sharp AI-driven rally makes it vulnerable to profit-taking and risk-off trading. Amkor, Teradyne and Kulicke and Soffa Shares Falling

Teradyne Stock Down 6.1%

The company has a market cap of $59.35 billion, a price-to-earnings ratio of 52.08, a price-to-earnings-growth ratio of 0.82 and a beta of 1.78. The company’s fifty day moving average price is $386.98 and its two-hundred day moving average price is $352.63.

Teradyne (NASDAQ:TER) last announced its earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping the consensus estimate of $2.09 by $0.38. The business had revenue of $1.33 billion for 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%.Teradyne’s revenue was up 103.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.57 EPS. Research analysts forecast that Teradyne, Inc. will post 9.1 earnings per share for the current year.

Hedge Funds Weigh In On Teradyne

Institutional investors have recently bought and sold shares of the business. Community Financial Services Group LLC bought a new stake in shares of Teradyne during the second quarter worth $29,000. Elevation Wealth Partners LLC raised its holdings in shares of Teradyne by 1,320.0% in the second 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 acquired a new position in Teradyne during the 2nd quarter worth about $36,000. Hilltop National Bank acquired a new position in Teradyne during the 2nd quarter worth about $41,000. Finally, McIlrath & Eck LLC bought a new stake in Teradyne during the 1st quarter worth about $30,000. Institutional investors own 99.77% of the company’s stock.

Teradyne Company Profile

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.