Teradyne (NASDAQ:TER) Reaches New 1-Year High – Should You Buy?

Shares of Teradyne, Inc. (NASDAQ:TER) hit a new 52-week high on Tuesday . The stock traded as high as $328.99 and last traded at $327.7360, with a volume of 351098 shares changing hands. The stock had previously closed at $318.50.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on TER shares. Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, February 4th. Robert W. Baird set a $305.00 price target on shares of Teradyne in a research report on Wednesday, February 4th. Morgan Stanley set a $306.00 price objective on Teradyne in a report on Wednesday, February 11th. Bank of America increased their price objective on Teradyne from $250.00 to $260.00 and gave the stock a “buy” rating in a research report on Thursday, January 22nd. Finally, TD Cowen restated a “buy” rating on shares of Teradyne in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $256.24.

Teradyne Stock Down 2.5%

The firm has a 50-day moving average price of $249.34 and a 200 day moving average price of $183.62. The firm has a market capitalization of $52.32 billion, a PE ratio of 96.31, a price-to-earnings-growth ratio of 2.04 and a beta of 1.83.

Teradyne (NASDAQ:TER) last posted its earnings results on Tuesday, February 3rd. The company reported $1.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.44. Teradyne had a return on equity of 22.68% and a net margin of 17.37%.The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $970.44 million. During the same quarter in the prior year, the company earned $0.95 EPS. Teradyne’s revenue was up 43.9% on a year-over-year basis. Equities research analysts expect that Teradyne, Inc. will post 3.88 earnings per share for the current year.

Teradyne Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 13th will be paid a $0.12 dividend. The ex-dividend date of this dividend is Friday, February 13th. This represents a $0.48 annualized dividend and a dividend yield of 0.1%. Teradyne’s dividend payout ratio (DPR) is presently 14.94%.

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Stephen Smith sold 1,108 shares of the company’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $201.31, for a total transaction of $223,051.48. Following the sale, the chief executive officer directly owned 93,409 shares of the company’s stock, valued at $18,804,165.79. This represents a 1.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.16% of the company’s stock.

Institutional Trading of Teradyne

Several hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd acquired a new position in Teradyne during the 4th quarter worth approximately $28,000. Root Financial Partners LLC purchased a new stake in shares of Teradyne during the 3rd quarter worth $31,000. Davidson Capital Management Inc. acquired a new position in shares of Teradyne during the third quarter worth $31,000. CYBER HORNET ETFs LLC purchased a new position in Teradyne in the second quarter valued at $35,000. Finally, Hemington Wealth Management increased its holdings in Teradyne by 43.2% in the third quarter. Hemington Wealth Management now owns 262 shares of the company’s stock valued at $36,000 after buying an additional 79 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company’s stock.

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.