Teradyne (NASDAQ:TER) Shares Gap Up – Still a Buy?

Shares of Teradyne, Inc. (NASDAQ:TER) gapped up before the market opened on Thursday . The stock had previously closed at $351.57, but opened at $379.24. Teradyne shares last traded at $376.8070, with a volume of 566,661 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on TER. Stifel Nicolaus raised their price target on Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a research report on Tuesday, April 28th. The Goldman Sachs Group boosted their price objective on Teradyne from $350.00 to $465.00 and gave the stock a “buy” rating in a research report on Monday. UBS Group increased their target price on Teradyne from $325.00 to $440.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Robert W. Baird raised their target price on Teradyne from $350.00 to $446.00 and gave the company an “outperform” rating in a report on Tuesday, June 23rd. Finally, Susquehanna lifted their price target on Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $390.53.

Teradyne Stock Performance

The firm has a 50 day moving average price of $383.65 and a two-hundred day moving average price of $320.90. The company has a market capitalization of $58.51 billion, a P/E ratio of 68.87, a price-to-earnings-growth ratio of 0.99 and a beta of 1.74.

Teradyne (NASDAQ:TER) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, beating the consensus estimate of $2.11 by $0.45. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same quarter in the previous year, the firm earned $0.75 EPS. Teradyne’s quarterly revenue was up 87.0% on a year-over-year basis. On average, equities analysts expect that Teradyne, Inc. will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were paid a $0.13 dividend. The ex-dividend date was Thursday, May 21st. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. This is a boost from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio is presently 9.63%.

Insider Buying and Selling

In related news, insider Shannon John Poulin sold 656 shares of Teradyne stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $355.00, for a total transaction of $232,880.00. Following the completion of the transaction, the insider directly owned 15,722 shares of the company’s stock, valued at $5,581,310. This trade represents a 4.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 business’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $377.60, for a total transaction of $256,768.00. Following the completion of the transaction, the vice president owned 7,665 shares in the company, valued at approximately $2,894,304. This trade represents a 8.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,941 shares of company stock worth $5,444,112 in the last quarter. 0.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Teradyne

Large investors have recently bought and sold shares of the business. Norges Bank bought a new position in Teradyne in the 4th quarter valued at $398,777,000. Wellington Management Group LLP grew its holdings in shares of Teradyne by 13,949.4% during the third quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock worth $280,357,000 after purchasing an additional 2,022,389 shares during the last quarter. Aspex Management HK Ltd bought a new stake in Teradyne during the 4th quarter worth about $199,723,000. Corient Private Wealth LLC grew its stake 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 valued at $208,254,000 after purchasing an additional 1,028,916 shares during the last quarter. Finally, Alkeon Capital Management LLC grew its stake in shares of Teradyne by 48.6% during the third quarter. Alkeon Capital Management LLC now owns 2,872,910 shares of the company’s stock valued at $395,427,000 after purchasing an additional 940,000 shares during the last quarter. 99.77% of the stock is currently owned by institutional investors.

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.