Teradyne (NASDAQ:TER) Shares Down 4.7% – Here’s Why

Shares of Teradyne, Inc. (NASDAQ:TER) fell 4.7% during mid-day trading on Monday. The stock traded as low as $381.74 and last traded at $383.85. 2,720,471 shares traded hands during trading, a decline of 23% from the average session volume of 3,536,399 shares. The stock had previously closed at $402.68.

Wall Street Analysts Forecast Growth

TER has been the topic of several research reports. Bank of America upped their target price on Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Robert W. Baird reaffirmed a “neutral” rating and set a $420.00 price target on shares of Teradyne in a research note on Friday, August 21st. Cantor Fitzgerald reiterated an “overweight” rating and issued a $550.00 price objective on shares of Teradyne in a research report on Wednesday, July 29th. Susquehanna increased their price objective on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Finally, Zacks Research cut shares of Teradyne from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Eleven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $396.80.

Teradyne Price Performance

The firm has a 50-day simple moving average of $382.67 and a two-hundred day simple moving average of $372.57. The company has a market cap of $60.01 billion, a PE ratio of 52.65, a P/E/G ratio of 0.81 and a beta of 1.75.

Teradyne (NASDAQ:TER) last released its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the previous year, the firm posted $0.57 earnings per share. The business’s revenue for the quarter was up 103.9% compared to the same quarter last year. Equities research analysts forecast that Teradyne, Inc. will post 9.11 EPS for the current year.

Teradyne Announces Dividend

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

Insider Transactions at Teradyne

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the sale, the chief executive officer directly owned 108,495 shares of the company’s stock, valued at $36,652,865.85. This trade represents a 3.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

A number of hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in Teradyne in the 2nd quarter valued at $9,404,408,000. Andar Capital Management HK Ltd acquired a new stake in shares of Teradyne during the second quarter worth $37,800,000. Bank of America Corp DE purchased a new position in Teradyne during the second quarter worth about $842,822,000. Legal & General Group Plc acquired a new stake in Teradyne in the 2nd quarter worth about $656,058,000. Finally, Bank of New York Mellon Corp acquired a new stake in Teradyne in the 2nd quarter worth about $459,012,000. 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.