Teradyne (NASDAQ:TER) Hits New 12-Month High – Here’s Why

Teradyne, Inc. (NASDAQ:TER) shares reached a new 52-week high on Monday . The company traded as high as $448.81 and last traded at $453.1660, with a volume of 33417 shares traded. The stock had previously closed at $437.92.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Bank of America raised its price target on Teradyne to $525 from $365 and reiterated a Buy rating, signaling stronger upside expectations for the semiconductor test and automation company.
• Positive Sentiment: Robert W. Baird also boosted its price target on Teradyne to $446 from $350 and kept an Outperform rating, adding to analyst optimism around the shares.
• Positive Sentiment: Teradyne Robotics announced a collaboration with Vention to create a digital twin platform for Universal Robots cells, which could support its automation and robotics growth story.
• Neutral Sentiment: A recent report noted Teradyne has been trading with elevated volume and has already run well above its longer-term moving averages, suggesting the stock may be sensitive to profit-taking and broader market swings.
• Negative Sentiment: Despite the positive analyst actions, TER still declined more than the general market in the latest session, indicating investors are currently prioritizing risk-off sentiment or locking in gains.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on TER. UBS Group raised their price target on shares of Teradyne from $325.00 to $440.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. JPMorgan Chase & Co. raised Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price on the stock in a report on Thursday, April 30th. Weiss Ratings upgraded Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a research report on Monday, May 4th. Finally, Evercore set a $370.00 price target on Teradyne in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $363.87.

Teradyne Price Performance

The company’s 50-day moving average price is $377.39 and its two-hundred day moving average price is $304.32. The company has a market capitalization of $65.77 billion, a price-to-earnings ratio of 77.80, a PEG ratio of 1.88 and a beta of 1.79.

Teradyne (NASDAQ:TER) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, beating analysts’ consensus estimates of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The business had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter in the prior year, the firm posted $0.75 earnings per share. The business’s quarterly revenue was up 87.0% compared to the same quarter last year. On average, equities research analysts expect that Teradyne, Inc. will post 7.09 EPS for the current fiscal year.

Teradyne Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were given 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 firm’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares of the company’s stock, valued at $2,894,304. This trade represents a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Stephen Smith sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $423.03, for a total value of $1,692,120.00. Following the completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,941 shares of company stock valued at $5,444,112 over the last 90 days. Company insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

Several hedge funds have recently modified their holdings of TER. Western Wealth Management LLC bought a new position in Teradyne during the first quarter worth $293,000. FAS Wealth Partners Inc. acquired a new position in shares of Teradyne during the first quarter valued at about $261,000. Evansbrook LLC acquired a new position in shares of Teradyne during the first quarter valued at about $205,000. Parallel Advisors LLC boosted its position in shares of Teradyne by 7.3% during the 1st quarter. Parallel Advisors LLC now owns 1,686 shares of the company’s stock worth $500,000 after purchasing an additional 114 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its position in shares of Teradyne by 35.7% during the 1st quarter. NewEdge Advisors LLC now owns 20,725 shares of the company’s stock worth $6,144,000 after purchasing an additional 5,455 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.