Teradyne (NASDAQ:TER) Stock Price Down 15.2% – What’s Next?

Shares of Teradyne, Inc. (NASDAQ:TER) dropped 15.2% on Thursday. The stock traded as low as $211.63 and last traded at $212.74. 10,971,816 shares traded hands during trading, an increase of 205% from the average daily volume of 3,601,862 shares. The stock had previously closed at $250.99.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s AI growth case is supported by strong exposure to AI-related revenue, anticipated memory and fab investment, and expanding capacity. One analysis also highlights growth across compute, industrial and robotics, while noting potential benefits from customers qualifying multiple suppliers. Teradyne: Profit Taking Continues – AI Meltdown Is A Contrarian Gift
• Positive Sentiment: Robotics profitability is being presented as an additional growth driver beyond semiconductor testing, broadening the investment case. Teradyne Robotics has also partnered with Sereact to apply physical AI in logistics and retail, with deployments already operating at European fulfillment hubs. Teradyne stock: Robotics profitability broadens AI growth case Is Teradyne Changing The Robotics Story With Its New Physical AI Push?
• Positive Sentiment: Teradyne was included in a Zacks list of Strong Buy AI stocks, with the article citing demand for AI infrastructure and semiconductors as a potential opportunity amid the technology selloff. 4 Strong Buy AI Stocks to Consider Amid the Tech Selloff
• Neutral Sentiment: Coverage says Teradyne and other semiconductor-related shares surged, but the headline does not identify a specific company catalyst. A separate article notes that memory-market expectations are holding up even as AI sentiment poses a risk. Micron, FormFactor, Amkor, Teradyne, and Nvidia shares skyrocket Teradyne stock faces AI sentiment risk as memory outlook holds
• Negative Sentiment: The broader semiconductor sector has faced sharp volatility. A reported Nasdaq selloff was tied to concerns that political shifts could bring tougher AI regulation and slow data-center construction. Jefferies characterized the reaction as emotional rather than a fundamental reset, but the uncertainty may pressure TER alongside other chip stocks. Oversold AI and chip stocks after the Nasdaq’s worst day since 2020

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on TER. Weiss Ratings upgraded Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 29th. Robert W. Baird lowered shares of Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 price target on the stock. in a research note on Friday, August 21st. Cantor Fitzgerald reiterated an “overweight” rating and set a $550.00 price objective on shares of Teradyne in a research note on Wednesday, July 29th. Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a report on Friday, October 30th. Finally, UBS Group decreased their target price on Teradyne from $485.00 to $430.00 and set a “buy” rating on the stock in a research report on Thursday, October 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $405.86.

Teradyne Stock Performance

The stock’s 50 day simple moving average is $351.61 and its two-hundred day simple moving average is $348.76. The firm has a market capitalization of $34.07 billion, a PE ratio of 25.05, a price-to-earnings-growth ratio of 0.51 and a beta of 1.73.

Teradyne (NASDAQ:TER) last posted its quarterly earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.20. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the prior year, the business earned $0.85 earnings per share. The business’s revenue was up 69.8% compared to the same quarter last year. Equities research analysts expect that Teradyne, Inc. will post 9.41 earnings per share for the current fiscal year.

Teradyne Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a dividend of $0.13 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. Teradyne’s payout ratio is presently 5.97%.

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the company’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the sale, the chief executive officer owned 104,495 shares of the company’s stock, valued at approximately $35,662,053.60. This represents a 3.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 12,000 shares of company stock worth $4,416,440. Insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Teradyne in the 2nd quarter valued at $9,404,408,000. Andar Capital Management HK Ltd purchased a new stake in Teradyne in the second quarter valued at approximately $37,800,000. State Street Corp lifted its stake in Teradyne by 4.6% during the second quarter. State Street Corp now owns 7,290,460 shares of the company’s stock worth $3,527,416,000 after purchasing an additional 320,034 shares in the last quarter. Aberdeen Group plc boosted its position in shares of Teradyne by 3,714.7% during the third quarter. Aberdeen Group plc now owns 4,654,505 shares of the company’s stock worth $1,866,038,000 after buying an additional 4,532,489 shares during the period. Finally, Van ECK Associates Corp grew its stake in shares of Teradyne by 5.0% in the second quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company’s stock valued at $1,261,813,000 after buying an additional 123,549 shares in the last quarter. Hedge funds and other institutional investors own 99.77% of the company’s stock.

Teradyne Company Profile

Teradyne, Inc develops and supplies automated test equipment and robotics used by manufacturers around the world. Its test systems help customers evaluate the performance and reliability of semiconductor devices, electronic products, wireless components and storage products.

The company’s offerings include semiconductor test systems, system-level test equipment and wireless test solutions. Teradyne also serves industrial automation markets through Universal Robots, which makes collaborative robots, and Mobile Industrial Robots, which develops autonomous mobile robots for moving materials in factories and other facilities.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers across global markets.