Teradyne (NASDAQ:TER) Shares Gap Down – Here’s What Happened

Teradyne, Inc. (NASDAQ:TER) gapped down before the market opened on Wednesday. The stock had previously closed at $323.68, but opened at $302.68. Teradyne shares last traded at $307.5310, with a volume of 991,672 shares traded.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Third-quarter results exceeded expectations: Teradyne reported adjusted earnings of $2.29 per share versus the $2.04–$2.09 consensus range, while revenue rose 69.8% year over year to approximately $1.31 billion, above estimates near $1.27 billion. Net income increased to $342.4 million from $119.6 million a year earlier. Teradyne Third-Quarter Earnings Results
• Positive Sentiment: Fourth-quarter outlook was better than expected: Management projected revenue of roughly $1.3 billion at the midpoint, about 1.8% above analyst expectations. The outlook reinforces demand for Teradyne’s semiconductor testing equipment, supported in part by artificial-intelligence-related chip investment. Teradyne Fourth-Quarter Guidance
• Positive Sentiment: Several market commentators continue to view Teradyne’s accelerating automated test equipment growth and exposure to AI-related semiconductor demand as long-term catalysts. An investment in FormFactor could also broaden strategic exposure within the semiconductor supply chain. Teradyne Growth Analysis
• Neutral Sentiment: UBS maintained its $485 price target, while reports that exchange-traded funds were buying TER provided some institutional-demand support. However, these developments were overshadowed by the immediate earnings reaction. UBS Maintains Teradyne Target
• Negative Sentiment: The stock declined despite the earnings beat. Investors may have expected an even stronger outlook after Teradyne’s sharp run-up, making the modest guidance outperformance vulnerable to profit-taking. Shares also trade at a relatively high valuation, with a reported price-to-earnings ratio of 44.4 and the stock below its 50-day and 200-day moving averages.
• Negative Sentiment: Argus lowered its price target to $382, signaling more limited near-term upside and adding to pressure on the shares. Argus Lowers Teradyne Price Target

Wall Street Analysts Forecast Growth

TER has been the topic of several research reports. Wall Street Zen raised Teradyne from a “hold” rating to a “buy” rating in a report on Saturday. Susquehanna lifted their price target on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a report on Tuesday, June 30th. Morgan Stanley increased their price objective on shares of Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Evercore reiterated an “outperform” rating and set a $420.00 price objective on shares of Teradyne in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $465.00 price objective on shares of Teradyne in a research note on Tuesday, July 28th. Eleven analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Teradyne has a consensus rating of “Moderate Buy” and an average price target of $412.64.

Teradyne Price Performance

The company has a market cap of $48.15 billion, a P/E ratio of 42.05 and a beta of 1.75. The company has a fifty day simple moving average of $369.87 and a 200-day simple moving average of $347.27.

Teradyne (NASDAQ:TER) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $2.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.20. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. The firm’s quarterly revenue was up 69.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.85 earnings per share. On average, analysts anticipate that Teradyne, Inc. will post 9.11 EPS for the current year.

Teradyne Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were given a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend was Friday, September 4th. Teradyne’s dividend payout ratio is 7.13%.

Insider Buying and Selling at Teradyne

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the transaction, the chief executive officer owned 104,495 shares in the company, valued at approximately $35,662,053.60. The trade was a 3.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 12,000 shares of company stock worth $4,416,440 over the last three months. Company insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

Hedge funds and other institutional investors have recently made changes to their positions in the company. Community Financial Services Group LLC bought a new stake in shares of Teradyne during the second quarter worth $29,000. Elevation Wealth Partners LLC boosted its stake 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 purchasing an additional 66 shares during the last quarter. Mcdonald Partners LLC bought a new position in shares of Teradyne in the 2nd quarter valued at about $36,000. Hilltop National Bank acquired a new stake in shares of Teradyne during the 2nd quarter worth approximately $41,000. Finally, Balance Wealth Partners LLC bought a new stake in shares of Teradyne during the third quarter worth approximately $39,000. 99.77% of the stock is owned by institutional investors and hedge funds.

About Teradyne

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company’s product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.