Teradyne (NASDAQ:TER) Shares Down 9.7% – Here’s What Happened

Teradyne, Inc. (NASDAQ:TER) shares fell 9.7% during trading on Thursday. The company traded as low as $312.95 and last traded at $312.0320. Approximately 746,210 shares changed hands during trading, a decline of 79% from the average daily volume of 3,509,714 shares. The stock had previously closed at $345.49.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Industrial AI expansion: Teradyne Robotics is partnering with Sereact to deploy “physical AI” solutions for difficult-to-automate retail and logistics tasks, including processing fashion returns. The collaboration supports Teradyne’s longer-term robotics growth story, although near-term financial benefits were not disclosed. Teradyne Robotics and Sereact Partner to Scale Physical AI Solutions for Retail and Logistics
• Positive Sentiment: Analyst and fund-flow support: UBS reportedly set a $485 price target, while Teradyne attracted approximately $84.4 million in net ETF buying on October 20. Analysts also continue to highlight the company’s margins, growth prospects and upcoming earnings catalyst. UBS sets $485 target
• Neutral Sentiment: Earnings are the next major catalyst: Teradyne’s October 27 results will be closely watched after its latest quarter substantially exceeded earnings and revenue expectations. Investors are likely focused on whether semiconductor test demand, robotics growth and management guidance can justify the stock’s elevated valuation. October 27 results loom for Teradyne stock
• Negative Sentiment: Broad AI and chip-stock weakness: Teradyne is participating in a wider selloff affecting semiconductor and AI names, as investors question whether the recent technology rebound can be sustained. The sector pressure appears to be the main immediate reason for the stock’s decline, rather than a newly reported company-specific problem. Chip Stocks Tumble, Crushing Investor Hopes for a Long-Term Rebound

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on TER shares. Robert W. Baird reissued a “neutral” rating and set a $420.00 target price on shares of Teradyne in a research report on Friday, August 21st. Weiss Ratings raised Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, September 29th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Zacks Research downgraded Teradyne from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Finally, Wall Street Zen lowered Teradyne from a “buy” rating to a “hold” rating in a report on Monday, September 28th. Eleven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $396.80.

Teradyne Trading Down 10.6%

The stock has a market cap of $48.27 billion, a P/E ratio of 42.35, a price-to-earnings-growth ratio of 0.68 and a beta of 1.75. The company’s fifty day simple moving average is $377.45 and its 200-day simple moving average is $375.23.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data 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 company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The business’s revenue was up 103.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.57 EPS. As a group, analysts expect that Teradyne, Inc. will post 9.11 earnings per share for the current fiscal year.

Teradyne Announces Dividend

The firm 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 dividend on an annualized basis and a yield of 0.2%. Teradyne’s payout ratio is presently 7.13%.

Insiders Place Their Bets

In related news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the transaction, the chief executive officer owned 104,495 shares of the company’s stock, valued at $35,662,053.60. This represents a 3.69% decrease in their ownership of the stock. The transaction 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. Insiders have sold a total of 12,000 shares of company stock valued at $4,416,440 over the last quarter. Insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TER. BlackRock Inc. acquired a new stake in Teradyne during the second quarter valued at approximately $9,404,408,000. Andar Capital Management HK Ltd acquired a new position in shares of Teradyne in the 2nd quarter worth approximately $37,800,000. State Street Corp raised its holdings in shares of Teradyne by 4.6% in the 2nd quarter. State Street Corp now owns 7,290,460 shares of the company’s stock worth $3,527,416,000 after buying an additional 320,034 shares in the last quarter. Van ECK Associates Corp raised its holdings in shares of Teradyne by 5.0% in the 2nd quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company’s stock worth $1,261,813,000 after buying an additional 123,549 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Teradyne by 0.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,978,124 shares of the company’s stock worth $957,096,000 after buying an additional 12,659 shares during the period. Institutional investors own 99.77% of the company’s stock.

About Teradyne

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company’s product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.