Teradyne (NASDAQ:TER) Trading 9.5% Higher – What’s Next?

Teradyne, Inc. (NASDAQ:TER)’s share price traded up 9.5% on Tuesday . The company traded as high as $366.84 and last traded at $365.5260. Approximately 451,344 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 3,814,689 shares. The stock had previously closed at $333.76.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on TER shares. Evercore set a $370.00 target price on shares of Teradyne in a research report on Thursday, April 30th. Morgan Stanley set a $387.00 price target on shares of Teradyne in a research report on Thursday, April 30th. Citigroup lifted their price target on Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 12th. Finally, Weiss Ratings raised Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a research note on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $394.53.

Teradyne Stock Performance

The stock has a market cap of $58.36 billion, a P/E ratio of 69.19, a price-to-earnings-growth ratio of 0.93 and a beta of 1.74. The company’s 50 day moving average price is $381.40 and its 200-day moving average price is $329.05.

Teradyne (NASDAQ:TER) last announced its 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 net margin of 22.55% and a return on equity of 31.79%. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the prior year, the company posted $0.75 earnings per share. The firm’s revenue for the quarter was up 87.0% on a year-over-year basis. On average, analysts forecast that Teradyne, Inc. will post 7.2 earnings per share for the current fiscal year.

Teradyne Increases Dividend

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

Insiders Place Their Bets

In other news, VP Ryan Driscoll sold 680 shares of the company’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 value of $256,768.00. Following the completion of the transaction, the vice president directly owned 7,665 shares of the company’s stock, valued at $2,894,304. This represents a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Stephen Smith sold 8,597 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $338.98, for a total value of $2,914,211.06. Following the sale, the chief executive officer directly owned 124,470 shares of the company’s stock, valued at $42,192,840.60. The trade was a 6.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 valued at $5,444,112 in the last 90 days. 0.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of TER. Caitong International Asset Management Co. Ltd bought a new stake in shares of Teradyne during the 4th quarter worth $28,000. Community Financial Services Group LLC bought a new position in Teradyne during the second quarter valued at about $29,000. McIlrath & Eck LLC purchased a new stake in Teradyne during the first quarter worth about $30,000. Elevation Wealth Partners LLC increased its holdings in Teradyne by 1,320.0% during the second quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock worth $34,000 after buying an additional 66 shares during the last quarter. Finally, CYBER HORNET ETFs LLC bought a new stake in Teradyne in the second quarter worth about $35,000. Hedge funds and other 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.