Teradyne (NASDAQ:TER) Stock Price Down 1% – Here’s Why

Teradyne, Inc. (NASDAQ:TER)’s share price was down 1% during mid-day trading on Monday. The company traded as low as $435.50 and last traded at $444.53. Approximately 1,677,148 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 3,564,906 shares. The stock had previously closed at $449.04.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: AI and robotics growth narrative: Teradyne is being highlighted as a key Nvidia testing partner with potential to participate in an AI-driven breakout. Its automated test equipment and robotics exposure give investors a way to benefit from semiconductor demand and the expansion of physical AI. Nvidia Testing Partner Takes Aim At AI-Fueled Breakout. Robotics Give Shares A Boost.
• Positive Sentiment: Bright Machines investment: Teradyne announced a strategic investment and planned collaboration with Bright Machines, pairing Teradyne’s robotics and testing technologies with Bright Machines’ software-defined manufacturing platform. The initiative targets AI infrastructure and data-center production, potentially expanding Teradyne’s addressable market and strengthening its industrial-AI positioning. Teradyne Makes Strategic Investment in Bright Machines to Advance AI Infrastructure Manufacturing
• Positive Sentiment: New product launch: Teradyne launched the Magnum E2, adding a fresh product catalyst to its semiconductor-test portfolio and reinforcing expectations that new testing solutions can support future revenue growth. Teradyne launches Magnum E2
• Neutral Sentiment: Supportive market conditions: Higher U.S. stock futures and firm manufacturing data provide a favorable backdrop for cyclical semiconductor and technology shares, but the broader market move is not specific to Teradyne. US Stock Market Today
• Negative Sentiment: Investment details remain limited: The financial terms of the Bright Machines transaction were not disclosed, making it difficult for investors to assess the near-term earnings impact. With TER trading at a premium valuation after a substantial run-up, execution risk and high growth expectations could limit further gains if new initiatives take time to contribute.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on TER shares. Robert W. Baird reissued a “neutral” rating and set a $420.00 price target on shares of Teradyne in a research note on Friday, August 21st. Evercore reaffirmed an “outperform” rating and set a $420.00 price objective on shares of Teradyne in a report on Thursday, July 30th. Susquehanna boosted their target price on Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. UBS Group upped their target price on Teradyne from $440.00 to $500.00 and gave the company a “buy” rating in a report on Monday, July 20th. Finally, Wall Street Zen cut Teradyne from a “buy” rating to a “hold” rating in a research report on Monday, September 28th. Eleven investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $396.80.

Teradyne Trading Down 1.0%

The stock’s 50 day moving average price is $375.08 and its two-hundred day moving average price is $368.40. The firm has a market capitalization of $69.50 billion, a PE ratio of 60.98, a PEG ratio of 0.91 and a beta of 1.75.

Teradyne (NASDAQ:TER) last posted its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.Teradyne’s revenue was up 103.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.57 EPS. Analysts expect that Teradyne, Inc. will post 9.11 earnings per share for the current year.

Teradyne Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a $0.13 dividend. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. The ex-dividend date was Friday, September 4th. Teradyne’s dividend payout ratio is currently 7.13%.

Insider Activity at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the sale, the chief executive officer owned 108,495 shares of the company’s stock, valued at $36,652,865.85. This trade represents a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Leeward Financial Partners LLC acquired a new stake in shares of Teradyne during the 2nd quarter worth $3,735,000. Legal & General Group Plc purchased a new stake in Teradyne during the second quarter valued at about $656,058,000. B. Metzler seel. Sohn & Co. AG acquired a new stake in Teradyne during the second quarter worth about $4,826,000. Handelsbanken Fonder AB increased its stake in Teradyne by 2.6% during the second quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company’s stock worth $61,927,000 after acquiring an additional 3,250 shares during the last quarter. Finally, Baird Financial Group Inc. raised its holdings in shares of Teradyne by 147.2% in the 2nd quarter. Baird Financial Group Inc. now owns 53,029 shares of the company’s stock worth $25,658,000 after purchasing an additional 31,579 shares during the period. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

Teradyne Company Profile

Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.

Teradyne’s products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.

Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.