Teradyne (NASDAQ:TER) Stock Jumps 12.7% Following Dividend Announcement

Teradyne, Inc. (NASDAQ:TER) shares rose 12.7% during trading on Monday after the company announced a dividend. The company traded as high as $247.48 and last traded at $246.00. Approximately 5,343,890 shares changed hands during mid-day trading, an increase of 47% from the average session volume of 3,629,651 shares. The stock had previously closed at $218.21.

The newly announced dividend which will be paid on Wednesday, December 16th. Investors of record on Monday, November 23rd will be paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date is Monday, November 23rd. Teradyne’s payout ratio is currently 5.97%.

Wall Street Analyst Weigh In

TER has been the topic of several recent research reports. Weiss Ratings upgraded Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 29th. UBS Group cut their price target on Teradyne from $485.00 to $430.00 and set a “buy” rating for the company in a report on Thursday, October 29th. Jefferies Financial Group assumed coverage on Teradyne in a research report on Wednesday. They issued a “buy” rating and a $284.00 price target for the company. Morgan Stanley boosted their price objective on Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Finally, Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a report on Friday, October 30th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $397.73.

Teradyne Price Performance

The firm has a market cap of $41.49 billion, a P/E ratio of 30.51, a PEG ratio of 0.48 and a beta of 1.73. The stock has a 50 day moving average of $347.34 and a 200 day moving average of $348.91.

Teradyne (NASDAQ:TER) last released its earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.20. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. Teradyne’s quarterly revenue was up 69.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.85 EPS. On average, research analysts predict that Teradyne, Inc. will post 9.41 EPS for the current fiscal year.

Latest Teradyne News

Here’s some of the latest news about TER:

• Positive Sentiment: Jefferies initiated coverage with a Buy rating and a $284 price target, citing the opportunity in AI chip testing and a growing relationship with Nvidia. The firm sees a potential $2 billion Nvidia-related opportunity for Teradyne. Barron’s article
• Positive Sentiment: The debut of the Omnyx Edge test platform extends Teradyne’s reach into edge-AI and physical-AI hardware, connecting its testing expertise with potential demand from factory automation and robotics. Investors will look for evidence that the new platform can add to AI-driven growth. Yahoo Finance article
• Neutral Sentiment: Teradyne declared a quarterly cash dividend of $0.13 per share, payable December 16 to shareholders of record November 23. The dividend provides a modest cash return but is unlikely to be a major growth catalyst. Yahoo Finance dividend announcement

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction on 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 sale, the chief executive officer owned 104,495 shares of the company’s stock, valued at $35,662,053.60. This trade represents a 3.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 12,000 shares of company stock worth $4,416,440. Corporate insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

A number of large investors have recently made changes to their positions in TER. Advisors Asset Management Inc. purchased a new position in Teradyne during the 3rd quarter valued at $12,569,000. Edmond DE Rothschild Holding S.A. grew its stake in shares of Teradyne by 177.6% in the third quarter. Edmond DE Rothschild Holding S.A. now owns 866 shares of the company’s stock worth $347,000 after acquiring an additional 554 shares during the last quarter. GW&K Investment Management LLC increased its stake in Teradyne by 79.8% during the 3rd quarter. GW&K Investment Management LLC now owns 989 shares of the company’s stock valued at $396,000 after purchasing an additional 439 shares in the last quarter. Private Wealth Asset Management LLC increased its position in shares of Teradyne by 1,834.3% during the third quarter. Private Wealth Asset Management LLC now owns 1,973 shares of the company’s stock valued at $791,000 after acquiring an additional 1,871 shares in the last quarter. Finally, Greenline Wealth Management LLC raised its stake in shares of Teradyne by 15.4% in the third quarter. Greenline Wealth Management LLC now owns 740 shares of the company’s stock worth $296,000 after purchasing an additional 99 shares during the last quarter. 99.77% of the stock is currently owned by institutional investors.

Teradyne Company Profile

Teradyne, Inc. develops and supplies automated test equipment and robotics used by manufacturers around the world. Its test systems help customers evaluate the performance and reliability of semiconductor devices, electronic products, wireless components and storage products. The company’s offerings include semiconductor test systems, system-level test equipment and wireless test solutions. Teradyne also serves industrial automation markets through Universal Robots, which makes collaborative robots, and Mobile Industrial Robots, which develops autonomous mobile robots for moving materials in factories and other facilities.