Teradyne (NASDAQ:TER) Shares Climb 8.3% – What’s Next?

Teradyne, Inc. (NASDAQ:TER)’s stock price traded up 8.3% during mid-day trading on Wednesday. The company traded as high as $273.22 and last traded at $265.78. 3,662,721 shares were traded during trading, an increase of 1% from the average daily volume of 3,629,501 shares. The stock had previously closed at $245.40.

Teradyne News Summary

Here’s some of the latest news about TER:

• Positive Sentiment: Strong demand for testing AI chips and memory, an expanding product portfolio, and roughly 70% year-over-year third-quarter revenue growth support Teradyne’s outlook and competitive position. Teradyne Benefits From Strong Test Demand
• Positive Sentiment: Jefferies initiated coverage with a Buy rating and a $284 price target, citing Teradyne’s opportunity in AI testing. Jefferies Buy rating and target
• Negative Sentiment: Valuation concerns may also weigh on sentiment: one analysis questions whether AI optimism and Teradyne’s past gains are already reflected in its share price. ARK’s flagship fund also exited its remaining position, though another ARK fund still holds shares. Teradyne valuation analysis ARK flagship fund exits Teradyne

Analysts Set New Price Targets

Several analysts recently issued reports on TER shares. The Goldman Sachs Group set a $440.00 price objective on Teradyne in a report on Wednesday, October 28th. Morgan Stanley boosted their target price on Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Jefferies Financial Group initiated coverage on Teradyne in a research note on Wednesday. They set a “buy” rating and a $284.00 price target for the company. Robert W. Baird cut Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 price target for the company. in a research note on Friday, August 21st. Finally, Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $397.73.

Teradyne Price Performance

The stock has a market capitalization of $38.96 billion, a P/E ratio of 28.65, a PEG ratio of 0.52 and a beta of 1.73. The stock’s fifty day moving average is $344.39 and its 200-day moving average is $349.26.

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

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Shareholders of record on Monday, November 23rd will be issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.2%. The ex-dividend date is Monday, November 23rd. Teradyne’s dividend payout ratio (DPR) is 5.97%.

Insider Activity at Teradyne

In other news, CEO Gregory Smith sold 4,000 shares of the business’s stock in a transaction on 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 directly owned 104,495 shares in the company, valued at approximately $35,662,053.60. The trade was a 3.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, 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 valued at $4,416,440 over the last 90 days. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. State Board of Administration of Florida Retirement System raised its holdings in Teradyne by 5.8% in the 3rd quarter. State Board of Administration of Florida Retirement System now owns 145,726 shares of the company’s stock worth $58,423,000 after acquiring an additional 7,960 shares during the period. Meeder Advisory Services Inc. grew its position in shares of Teradyne by 1.8% in the third quarter. Meeder Advisory Services Inc. now owns 5,429 shares of the company’s stock valued at $2,177,000 after purchasing an additional 94 shares during the last quarter. First Trust Advisors LP grew its position in shares of Teradyne by 6.2% in the third quarter. First Trust Advisors LP now owns 631,329 shares of the company’s stock valued at $253,106,000 after purchasing an additional 36,656 shares during the last quarter. Allianz SE grew its position in shares of Teradyne by 244.7% in the third quarter. Allianz SE now owns 162 shares of the company’s stock valued at $65,000 after purchasing an additional 115 shares during the last quarter. Finally, E Fund Management Hong Kong Co. Ltd. increased its stake in shares of Teradyne by 58.2% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 1,386 shares of the company’s stock worth $556,000 after purchasing an additional 510 shares during the period. 99.77% of the stock is currently owned by institutional investors and hedge funds.

About Teradyne

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.