Teradyne (NASDAQ:TER) Lowered to Hold Rating by Vertical Research

Vertical Research downgraded shares of Teradyne (NASDAQ:TER) from a buy rating to a hold rating in a research note issued to investors on Friday morning, MarketBeat reports. They currently have $220.00 price objective on the stock.

Other analysts have also recently issued research reports about the stock. Morgan Stanley increased their price target on shares of Teradyne from $100.00 to $136.00 and gave the stock an “equal weight” rating in a research note on Tuesday, October 14th. Stifel Nicolaus set a $225.00 price objective on shares of Teradyne and gave the company a “buy” rating in a research note on Tuesday, December 2nd. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $240.00 target price on shares of Teradyne in a report on Tuesday, December 16th. Northland Securities set a $186.00 price target on Teradyne in a report on Thursday, October 30th. Finally, Susquehanna restated a “positive” rating and issued a $215.00 price target on shares of Teradyne in a research report on Thursday, October 30th. Twelve investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Teradyne presently has a consensus rating of “Moderate Buy” and an average target price of $191.06.

Teradyne Stock Up 0.4%

Shares of NASDAQ TER opened at $217.26 on Friday. The business has a 50-day moving average price of $189.86 and a 200 day moving average price of $142.49. The stock has a market cap of $34.03 billion, a PE ratio of 79.00, a price-to-earnings-growth ratio of 1.56 and a beta of 1.84. Teradyne has a 52-week low of $65.77 and a 52-week high of $229.66.

Teradyne (NASDAQ:TER) last issued its quarterly earnings data on Wednesday, October 29th. The company reported $0.85 earnings per share for the quarter, beating analysts’ consensus estimates of $0.78 by $0.07. The company had revenue of $769.21 million during the quarter, compared to analysts’ expectations of $744.20 million. Teradyne had a return on equity of 18.04% and a net margin of 15.49%.The firm’s revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.90 earnings per share. Sell-side analysts anticipate that Teradyne will post 3.88 earnings per share for the current year.

Teradyne Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 17th. Shareholders of record on Monday, November 24th were issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend was Monday, November 24th. Teradyne’s payout ratio is currently 17.45%.

Insider Transactions at Teradyne

In other news, CEO Gregory Stephen Smith sold 1,108 shares of the stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $201.31, for a total transaction of $223,051.48. Following the completion of the transaction, the chief executive officer directly owned 93,409 shares of the company’s stock, valued at approximately $18,804,165.79. This represents a 1.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 0.16% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of TER. Bank of Nova Scotia lifted its position in shares of Teradyne by 546.5% during the 2nd quarter. Bank of Nova Scotia now owns 98,254 shares of the company’s stock valued at $8,835,000 after acquiring an additional 83,055 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its stake in Teradyne by 3.4% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 277,002 shares of the company’s stock valued at $24,908,000 after purchasing an additional 9,094 shares in the last quarter. Thrivent Financial for Lutherans raised its holdings in Teradyne by 291.6% during the second quarter. Thrivent Financial for Lutherans now owns 24,995 shares of the company’s stock worth $2,247,000 after purchasing an additional 18,612 shares during the last quarter. Sequoia Financial Advisors LLC boosted its position in Teradyne by 73.3% during the second quarter. Sequoia Financial Advisors LLC now owns 4,585 shares of the company’s stock worth $412,000 after purchasing an additional 1,939 shares in the last quarter. Finally, Fort Washington Investment Advisors Inc. OH purchased a new stake in Teradyne during the third quarter worth $895,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: AI-driven demand and market inflows — Coverage highlights strong secular demand for semiconductor test and automation from AI infrastructure, and data showing a sizable “Big Money” inflow since June 2024 that has helped push the stock higher. Teradyne Rises on AI Demand, Bullish Inflows
• Positive Sentiment: Bank of America raised its price target and kept a Buy stance, boosting bullish analyst support and giving investors a higher benchmark (PT moved to $235). BofA Updates Semiconductor PTs
• Positive Sentiment: High-profile endorsement — Jim Cramer publicly expressed confidence in TER, which can help retail momentum and sentiment even if he cautioned about exuberance. Jim Cramer on Teradyne
• Neutral Sentiment: Options activity spiked — Unusually large options trades were reported, indicating speculative positioning that can amplify moves but doesn’t clarify directional conviction. Teradyne Target of Unusually Large Options Trading
• Neutral Sentiment: Investor guidance/earnings watch — Several pieces discuss expectations for TER’s next report; upcoming results and guidance will be key to validating the AI-demand story. Here’s what to expect from Teradyne’s next earnings report
• Negative Sentiment: Analyst downgrade and tighter upside — Vertical Research cut TER from Buy to Hold and set a $220 PT, signaling limited near-term upside from current levels and adding near-term pressure. Vertical Research Downgrades Teradyne
• Negative Sentiment: Valuation worries and profit-taking discussion — Multiple analysts and articles question whether TER is pricing in too much optimism after a strong multi‑year run; these pieces increase the case for a pullback or volatility. Is Teradyne Pricing In Too Much Optimism?
• Negative Sentiment: Recent short-term pullbacks — Reports note recent daily slides larger than the market, reflecting profit-taking and sensitivity to news. Teradyne Stock Slides

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.