Teradyne (NASDAQ:TER) Trading Down 7.3% – Time to Sell?

Teradyne, Inc. (NASDAQ:TER) shares fell 7.3% during mid-day trading on Monday . The stock traded as low as $328.79 and last traded at $324.3970. Approximately 583,496 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 3,788,078 shares. The stock had previously closed at $349.92.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne reported second-quarter revenue of $1.329 billion, up 103.9% year over year and above the $1.22 billion analyst consensus. Non-GAAP earnings were $2.47 per share, topping expectations near $2.09 and rising sharply from $0.57 a year earlier. Semiconductor Test generated $1.122 billion of revenue, the primary driver of the result. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Management forecast third-quarter revenue of approximately $1.2 billion to $1.3 billion and EPS of $1.85 to $2.15. The revenue midpoint of $1.25 billion and EPS midpoint of $2.00 were well above Wall Street expectations of roughly $1.0 billion and $1.43, respectively. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Positive Sentiment: The outlook suggests continued investment in wafer-fabrication equipment as chipmakers develop more powerful processors for AI data centers and vehicles. This supports demand for Teradyne’s higher-value automated test systems and was cited as the reason shares rose sharply in after-hours trading. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Neutral Sentiment: Despite the strong results, Teradyne remains a high-expectation stock: its P/E ratio is about 59 and its shares had recently pulled back substantially after a powerful year-long rally. Investors may therefore continue to scrutinize whether AI-driven growth can justify the valuation and sustain the elevated earnings outlook.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on TER. Morgan Stanley set a $387.00 price target on Teradyne in a report on Thursday, April 30th. UBS Group lifted their target price on Teradyne from $440.00 to $500.00 and gave the company a “buy” rating in a research report on Monday, July 20th. Evercore set a $370.00 target price on Teradyne in a research note on Thursday, April 30th. JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price for the company in a report on Thursday, April 30th. Finally, Robert W. Baird raised their price target on shares of Teradyne from $350.00 to $446.00 and gave the company an “outperform” rating in a research note on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $394.53.

Teradyne Stock Performance

The company has a market cap of $50.26 billion, a price-to-earnings ratio of 59.46, a P/E/G ratio of 0.97 and a beta of 1.74. The company has a fifty day moving average of $382.68 and a two-hundred day moving average of $335.09.

Teradyne (NASDAQ:TER) last issued its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The business had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter in the prior year, the firm earned $0.57 EPS. The business’s revenue for the quarter was up 103.9% compared to the same quarter last year. Equities analysts expect that Teradyne, Inc. will post 7.2 EPS for the current fiscal year.

Teradyne Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were issued a $0.13 dividend. This is a boost from Teradyne’s previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. Teradyne’s dividend payout ratio (DPR) is 9.63%.

Insider Buying and Selling

In other Teradyne news, insider Shannon John Poulin sold 656 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total value of $232,880.00. Following the completion of the transaction, the insider directly owned 15,722 shares in the company, valued at approximately $5,581,310. This represents a 4.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Ryan Driscoll sold 680 shares of the firm’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total transaction of $256,768.00. Following the transaction, the vice president directly owned 7,665 shares of the company’s stock, valued at $2,894,304. The trade was a 8.15% decrease in their position. 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 have sold a total of 14,941 shares of company stock worth $5,444,112 in the last ninety days. Company insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new position in Teradyne during the 4th quarter worth about $398,777,000. Wellington Management Group LLP increased its stake in shares of Teradyne by 13,949.4% in the third quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock valued at $280,357,000 after buying an additional 2,022,389 shares during the period. Aspex Management HK Ltd acquired a new stake in shares of Teradyne in the fourth quarter valued at about $199,723,000. Corient Private Wealth LLC raised its position in shares of Teradyne by 2,189.2% during the fourth quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after acquiring an additional 1,028,916 shares during the last quarter. Finally, Rafferty Asset Management LLC raised its position in shares of Teradyne by 65.4% during the second quarter. Rafferty Asset Management LLC now owns 2,166,039 shares of the company’s stock worth $194,770,000 after acquiring an additional 856,540 shares during the last quarter. 99.77% of the stock is currently owned by institutional investors and hedge funds.

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.